UST Acquires ISG Automation Unit for $27 Million, Strengthening Position in Intelligent Automation Market

UST Acquires ISG Automation

Strategic move strengthens UST's presence in the dynamic intelligent automation market while laying the foundation for further growth amidst new demand UST, a leading digital transformation solutions company, has acquired the automation unit of Information Services Group (ISG), strengthening its position in the intelligent automation space and positioning the company for future growth in a dynamic market. The acquired unit is a leading provider of intelligent automation solutions, utilizing artificial intelligence (AI), robotic process automation (RPA), and automation technologies to help clients across a range of industries optimize their business processes, enhance the customer experience, and reduce operational costs. Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm, said it has sold its automation unit to UST for $27 million in an all-cash transaction. Initially founded in 2017, the unit offers RPA software implementation, support, and licensing services. The unit has over 120 senior automation consultants and technologists across US, UK, India, Canada, and Germany. As a long-standing leader in the market, the acquired unit boasts strong partnerships with leading automation vendors such as Automation Anywhere, UiPath, and Blue Prism, and offers end-to-end services ranging from strategy and design to implementation and support. Furthermore, the acquisition will strengthen UST's partner ecosystem in the intelligent automation space and allow the company to deliver a broader set of services to its clients. This significant investment strengthening UST's position in a critical sector that has the potential to transform industries, enhance productivity, improve customer experiences, and further build on diverse revenue streams. The move comes at a time when enterprises are seeking to scale and optimize automation across the enterprise and leverage these benefits for broader business transformation. As the role of generative AI in enterprise automation expands, the acquisition will allow UST to continue meeting client needs while driving innovation and cost optimization. As part of the agreement, UST will onboard highly experienced intelligent automation consultants globally. "Building on the success of the UST SmartOps platform as well as our current services and partnerships, this strategic acquisition represents a significant step forward for the UST Automation team, enabling greater intelligent automation consulting capabilities and allowing us to broaden our partner ecosystem. The move strengthens our ability to deliver a larger set of services to our clients, including business transformation, automation-powered BPaaS and cost take out capabilities. As the intelligent automation space continues to grow, UST is committed to expanding its portfolio of automation platforms, accelerators and AI-based solutions to meet the constantly evolving needs of clients and partners," said Sajesh Gopinath, General Manager, UST Automation. "Our former automation unit will benefit from being part of a larger technology services organization, UST, a company that we have known and respected for years - and one that has the resources and scale to compete in the intelligent process automation space," said Michael P. Connors, Chairman and Chief Executive Officer, ISG. About ISG ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world's top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries -- a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry's most comprehensive marketplace data. For more information, visit www.isg-one.com. About UST Since 1999, UST has worked side by side with the world's best companies to make a powerful impact through transformation. Powered by technology, inspired by people, and led by our purpose, we partner with our clients from design to operation. Our digital solutions, proprietary platforms, engineering expertise, and innovation ecosystem turn core challenges into impactful, disruptive solutions. With deep industry knowledge and a future-ready mindset, we infuse innovation and agility into our clients' organizations -- delivering measurable value and positive lasting change for them, their customers, and communities around the world. Together, with 30,000+ employees in 30+ countries, we build for boundless impact -- touching billions of lives in the process. Visit us at www.UST.com.

UST Acquires ISG Automation By Investing.com

Strategic move strengthens UST's presence in the dynamic intelligent automation market while laying the foundation for further growth amidst new demand , /PRNewswire/ -- UST, a leading digital transformation solutions company, has acquired the automation unit of Information Services Group (NASDAQ:III) (ISG), strengthening its position in the intelligent automation space and positioning the company for future growth in a dynamic market. The acquired unit is a leading provider of intelligent automation solutions, utilizing artificial intelligence (AI), robotic process automation (RPA), and automation technologies to help clients across a range of industries optimize their business processes, enhance the customer experience, and reduce operational costs. Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm, said it has sold its automation unit to UST for in an all-cash transaction. Initially founded in 2017, the unit offers RPA software implementation, support, and licensing services. The unit has over 120 senior automation consultants and technologists across US, , , , and . As a long-standing leader in the market, the acquired unit boasts strong partnerships with leading automation vendors such as Automation Anywhere, UiPath (NYSE:PATH), and Blue Prism, and offers end-to-end services ranging from strategy and design to implementation and support. Furthermore, the acquisition will strengthen UST's partner ecosystem in the intelligent automation space and allow the company to deliver a broader set of services to its clients. This significant investment strengthening UST's position in a critical sector that has the potential to transform industries, enhance productivity, improve customer experiences, and further build on diverse revenue streams. The move comes at a time when enterprises are seeking to scale and optimize automation across the enterprise and leverage these benefits for broader business transformation. As the role of generative AI in enterprise automation expands, the acquisition will allow UST to continue meeting client needs while driving innovation and cost optimization. As part of the agreement, UST will onboard highly experienced intelligent automation consultants globally. "Building on the success of the UST SmartOps platform as well as our current services and partnerships, this strategic acquisition represents a significant step forward for the UST Automation team, enabling greater intelligent automation consulting capabilities and allowing us to broaden our partner ecosystem. The move strengthens our ability to deliver a larger set of services to our clients, including business transformation, automation-powered BPaaS and cost take out capabilities. As the intelligent automation space continues to grow, UST is committed to expanding its portfolio of automation platforms, accelerators and AI-based solutions to meet the constantly evolving needs of clients and partners," said , General Manager, UST Automation. "Our former automation unit will benefit from being part of a larger technology services organization, UST, a company that we have known and respected for years " and one that has the resources and scale to compete in the intelligent process automation space," said , Chairman and Chief Executive Officer, ISG. About ISG ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world's top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in , ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries"a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry's most comprehensive marketplace data. For more information, visit www.isg-one.com. Media Contacts, ISG: , ISG +1 203 517 3119 will.thoretz@isg-one.com About UST Since 1999, UST has worked side by side with the world's best companies to make a powerful impact through transformation. Powered by technology, inspired by people, and led by our purpose, we partner with our clients from design to operation. Our digital solutions, proprietary platforms, engineering expertise, and innovation ecosystem turn core challenges into impactful, disruptive solutions. With deep industry knowledge and a future-ready mindset, we infuse innovation and agility into our clients' organizations"delivering measurable value and positive lasting change for them, their customers, and communities around the world. Together, with 30,000+ employees in 30+ countries, we build for boundless impact"touching billions of lives in the process. Visit us at www.UST.com.

UST acquires automation unit of ISG for $27 million

IT services company UST purchased the automation unit of ISG for $27 million. The move aims to enhance UST's intelligent automation services using AI and RPA. The acquired unit will help clients improve business processes, customer experience, and reduce costs. UST will also expand its workforce in Kochi and globally onboard experienced consultants.IT services firm UST said on Thursday that it has acquired the automation unit of Information Services Group (ISG), for a total consideration of $27 million. The firm said the acquisition will strengthen its position in the intelligent automation space and allow the company to deliver a broader set of services to its clients. The acquired unit is a leading provider of intelligent automation solutions, utilizing artificial intelligence (AI), robotic process automation (RPA), and automation technologies to help clients across a range of industries, said the firm in its statement. It further added that the automation unit of ISG helps optimize clients' business processes, enhance their customer experience, and reduce their operational costs. The development comes days after the IT firm set a target of 6,000 employees in its Kochi centre, up from the current level of 2,800, in the next five years. While UST's Thiruvananthapuram centre has about 7,500 employees and is the company's largest centre globally, UST Bengaluru has about 6,500 employees. Across India, the IT firm has around 20,000 employees. Globally, the firm has more than 30,000 employees. Initially founded in 2017, the automation unit offers RPA software implementation, support, and licensing services. The unit has over 120 senior automation consultants and technologists across US, UK, India, Canada, and Germany. As part of the agreement, UST will onboard highly experienced intelligent automation consultants globally. Sajesh Gopinath, general manager, UST Automation, said, "The move strengthens our ability to deliver a larger set of services to our clients, including business transformation, automation-powered BPaaS and cost take out capabilities. As the intelligent automation space continues to grow, UST is committed to expanding its portfolio of automation platforms, accelerators and AI-based solutions to meet the constantly evolving needs of clients and partners." Michael P. Connors, chairman and chief executive officer, ISG, said, "Our former automation unit will benefit from being part of a larger technology services organization, UST, a company that we have known and respected for years - and one that has the resources and scale to compete in the intelligent process automation space."

ISG Sells Its Automation Unit to UST - Information Servs Gr (NASDAQ:III)

Move sharpens ISG's focus, strengthens balance sheet and immediately enhances shareholder value Information Services Group (ISG) III, a leading global technology research and advisory firm, said today it has sold its automation unit to UST, a leading digital transformation solutions company, for $27 million in an all-cash transaction, with a portion of the proceeds placed in escrow, to be released contingent upon meeting certain conditions. The unit offers robotic process automation (RPA) software implementation and licensing services. It was established as a startup business in 2017 to meet the emerging demand for RPA. ISG Chairman and CEO Michael P. Connors said the sale is a "win-win" for both ISG and UST. "With this sale, ISG emerges as a stronger, more focused firm, devoted to serving our clients by leveraging our towering strengths in sourcing, powered by our AI-driven ISG Tango™ platform; digital transformation, including enterprise change and training-as-a-service; AI advisory, technology research and supplier governance," Connors said. "In addition, the cash proceeds of the sale immediately strengthen our balance sheet and improve shareholder value. "At the same time, our former automation unit will benefit from being part of a larger technology services organization in UST, one that we have known and respected for years, with the resources and scale to compete in the intelligent automation space," Connors said. Commenting on UST's acquisition, Sajesh Gopinath, general manager and go-to-market leader, UST SmartOps, said: "This strategic investment in the intelligent automation space solidifies UST's position as a market leader in a dynamic sector that has the potential to transform industries, enhance productivity, improve customer experiences, and generate new revenue streams. By onboarding experienced intelligent automation consultants and capabilities, UST is strengthening its standing in a competitive market and broadening its partner ecosystem to position itself for future growth and meet the emerging needs of our clients." Connors said ISG decided to exit the business because its implementation and software licensing activities no longer were a strategic fit with ISG's position as an independent, third-party advisory firm. ISG received $20 million in cash at closing with the remaining $7 million held in escrow. Of this amount, $4 million is to be released from escrow over the next 90 days as certain contractual conditions with clients are met, and the remaining $3 million is to be released after the end of the first quarter of 2025, based on the achievement of certain revenue targets. Net proceeds from the transaction are expected to provide the opportunity to reduce debt and return capital to shareholders. To reflect the impact of the divestiture activity, ISG said it is updating its third-quarter guidance, targeting revenues in the range of $60 million to $61 million, and adjusted EBITDA (a non-GAAP measure defined below under "Non-GAAP Financial Measures") in the range of $6.5 million to $7.0 million. Sett & Lucas served as financial advisor to ISG, and Katten Muchin Rosenman LLP served as legal advisor. ISG will file a Form 8-K with the Securities and Exchange Commission in connection with the sale. Conference Call ISG will hold a conference call today, Wednesday, October 2, at 4:30 p.m., US ET, to discuss the transaction. The call can be accessed by dialing (800) 715-9871, or, for international callers, by dialing +1 (646) 307-1963. The access code is 3455640. A recording of the call will be available on ISG's investor relations page for approximately four weeks following the call. This communication contains "forward-looking statements" which represent the current expectations and beliefs of management of ISG concerning future events and their potential effects. Statements contained herein including words such as "anticipate," "believe," "contemplate," "plan," "estimate," "target," "expect," "intend," "will," "continue," "should," "may," and other similar expressions are "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not guarantees of future results and are subject to certain risks and uncertainties, many of which are beyond the control of ISG, its directors and its management, that could cause actual results to differ materially from those anticipated, including, without limitation: (1) the occurrence of any event, change or other circumstance that could affect ISG's rights or obligations under the Share Purchase Agreement governing the divestiture, (2) risks related to the disruption of management's attention from ISG's ongoing business operations due to the divestiture and ISG's obligations under the Share Purchase Agreement, (3) risks that the divestiture may disrupt current plans and operations and any potential difficulties in employee retention as a result and (4) the effect of the announcement of the transaction on the ISG's relationships with its customers and suppliers and on its business generally. Certain of these and other applicable risks, cautionary statements and factors that could cause actual results to differ from ISG's forward-looking statements are included in ISG's filings with the U.S. Securities and Exchange Commission. ISG undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events or circumstances. Non-GAAP Financial Measures ISG reports all financial information required in accordance with U.S. generally accepted accounting principles (GAAP). In its updated third-quarter guidance appearing in this release, ISG has presented both GAAP financial results as well as non-GAAP information. ISG believes that evaluating its ongoing operating results will be enhanced if it discloses certain non-GAAP information. These non-GAAP financial measures exclude non-cash and certain other special charges that many investors believe may obscure the user's overall understanding of ISG's current financial performance and the Company's prospects for the future. ISG believes that these non-GAAP measures provide useful information to investors because they improve the comparability of the financial results between periods and provide for greater transparency of key measures used to evaluate the Company's performance. In this press release, ISG provides adjusted EBITDA (defined as net income, plus interest, taxes, depreciation and amortization, foreign currency transaction gains/losses, non-cash stock compensation, interest accretion associated with contingent consideration, acquisition-related costs, and severance, integration and other expense), which is a non-GAAP measure that the Company believes provide useful information to both management and investors by excluding certain expenses, which management believes are not indicative of ISG's core operations. This non-GAAP measure is used by ISG to evaluate the Company's business strategies and management's performance. Management believes this information facilitates comparison of underlying results over time. Non-GAAP financial measures, when presented, are reconciled to the most closely applicable GAAP measure. Non-GAAP measures are provided as additional information and should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the forward-looking non-GAAP estimates contained herein to the corresponding GAAP measures is not being provided, due to the unreasonable efforts required to prepare it. About UST Since 1999, UST has worked side by side with the world's best companies to make a powerful impact through transformation. Powered by technology, inspired by people, and led by our purpose, we partner with our clients from design to operation. Our digital solutions, proprietary platforms, engineering expertise, and innovation ecosystem turn core challenges into impactful, disruptive solutions. With deep industry knowledge and a future-ready mindset, we infuse innovation and agility into our clients' organizations -- delivering measurable value and positive lasting change for them, their customers, and communities around the world. Together, with 30,000+ employees in 30+ countries, we build for boundless impact -- touching billions of lives in the process. Visit us at www.UST.com. About ISG ISG (Information Services Group) III is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world's top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including AI, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries -- a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry's most comprehensive marketplace data. For more information, visit www.isg-one.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20241002053674/en/ Market News and Data brought to you by Benzinga APIs