Perficient Completes Acquisition of SMEDIX, INC.

Rhea-AI Summary

Perficient, Inc. (Nasdaq: PRFT) has completed the acquisition of SMEDIX, Inc., a healthcare software engineering firm, for approximately $12 million. The firm is headquartered in San Diego, California, with offshore operations in Cluj-Napoca, Romania. The definitive agreement was previously announced on Oct. 20, 2023.

Insights

Market Research Analyst

The acquisition of SMEDIX, Inc. by Perficient, Inc. represents a strategic expansion into the healthcare software engineering sector. This move can be seen as an effort to diversify Perficient's service offerings and penetrate a market that is expected to grow significantly, driven by the increasing demand for digital health solutions. The reported revenue of SMEDIX, at approximately $12 million, suggests a modest but potentially strategic addition to Perficient's overall revenue stream.

From a market perspective, this acquisition could signal to investors Perficient's commitment to growth and expansion in a high-demand industry. It may also indicate a proactive approach to leveraging offshore capabilities for competitive advantage, given SMEDIX's operations in Romania, which could offer cost efficiencies and access to a skilled labor pool.

Financial Analyst

The financial implications of the acquisition for Perficient's balance sheet and earnings will be critical to assess. The $12 million revenue figure for SMEDIX is a key data point; however, investors will need to consider the acquisition cost, the integration expenses and the time frame for the acquisition to be accretive to earnings. Additionally, the impact on Perficient's cash reserves and any potential financing arrangements used to fund the acquisition should be evaluated.

Long-term, the synergies between SMEDIX's healthcare software engineering expertise and Perficient's existing services could lead to enhanced product offerings and cross-selling opportunities. However, the short-term financial impact will depend on the efficiency of the integration process and the ability of the combined entity to capitalize on the growing digital healthcare market.

Healthcare Industry Expert

The healthcare sector is rapidly adopting digital technologies, making Perficient's acquisition of SMEDIX a timely strategic move. SMEDIX's expertise in healthcare software engineering is likely to complement Perficient's digital consultancy services, potentially leading to innovative solutions for the healthcare industry. The integration of SMEDIX could enable Perficient to address complex regulatory requirements and patient data security concerns more effectively, which are critical aspects of healthcare IT.

Moreover, the presence of offshore operations in Romania could allow Perficient to tap into emerging markets and cater to a global clientele. This international dimension may enhance the company's competitive edge in the healthcare IT space, where localized knowledge and cost-effective development are becoming increasingly important.

ST. LOUIS--(BUSINESS WIRE)-- Perficient, Inc. (Nasdaq: PRFT) (“Perficient”), the leading digital consultancy transforming the world’s largest enterprises and biggest brands, announced today it has completed the acquisition of SMEDIX, Inc., an approximately $12 million revenue healthcare software engineering firm headquartered in San Diego, California, with offshore operations located in Cluj-Napoca, Romania. The signing of the definitive agreement was previously announced on Oct. 20, 2023.

About Perficient

Perficient is the leading global digital consultancy. We imagine, create, engineer, and run digital transformation solutions that help our clients exceed customers’ expectations, outpace competition, and grow their business. With unparalleled strategy, creative, and technology capabilities, we bring big thinking and innovative ideas, along with a practical approach to help the world’s largest enterprises and biggest brands succeed. Traded on the Nasdaq Global Select Market, Perficient is a member of the Russell 2000 index and the S&P SmallCap 600 index. For more information, visit www.perficient.com.

Safe Harbor Statement

Some of the statements contained in this news release that are not purely historical statements discuss future expectations or state other forward-looking information related to financial results and business outlook for 2023. Those statements are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from those contemplated by the statements. The forward-looking information is based on management’s current intent, belief, expectations, estimates, and projections regarding our company and our industry. You should be aware that those statements only reflect our predictions. Actual events or results may differ substantially. Important factors that could cause our actual results to be materially different from the forward-looking statements include (but are not limited to) those disclosed under the heading “Risk Factors” in our most recently filed annual report on Form 10-K and other securities filings.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240116540386/en/

Bill Davis, Senior Vice President

314-529-3555

Source: Perficient, Inc.

FAQ

What is the ticker symbol for Perficient, Inc.?

The ticker symbol for Perficient, Inc. is PRFT.

What is the name of the acquired healthcare software engineering firm?

The acquired firm is SMEDIX, Inc.

Where is SMEDIX, Inc. headquartered?

SMEDIX, Inc. is headquartered in San Diego, California.

What was the revenue of SMEDIX, Inc.?

The revenue of SMEDIX, Inc. was approximately $12 million.

Where are the offshore operations of SMEDIX, Inc. located?

The offshore operations of SMEDIX, Inc. are located in Cluj-Napoca, Romania.

When was the definitive agreement for the acquisition announced?

The definitive agreement for the acquisition was previously announced on Oct. 20, 2023.