Asgn Incorporated (NYSE:ASGN)

CALABASAS, Calif.--(BUSINESS WIRE)--On Assignment, Inc. (NASDAQ: ASGN) (“Company”) today announced that it has signed a definitive agreement to acquire Apex Systems Inc., a leading information technology staffing and services firm. The transaction will create one of the largest professional staffing firms and the 2^nd largest IT staffing firm in the United States. The acquisition is expected to be significantly accretive to On Assignment’s earnings per share, on both a GAAP and cash EPS basis, in 2012 and beyond. On a pro forma basis, 2011 revenue of the combined entity was $1.3 billion.

“Apex Systems becoming part of On Assignment further positions us in the most attractive and fastest-growing segments of the staffing industry”

Privately-held Apex Systems is the 6^th largest and one of the fastest growing IT staffing firms in the United States. In 2011, Apex Systems had approximately $700 million in revenue and adjusted EBITDA of approximately $65 million. Apex Systems has achieved a compound annual revenue growth rate (CAGR) of 30.4% since 2000 and expects to achieve double-digit top-line growth in 2012.

“Apex Systems becoming part of On Assignment further positions us in the most attractive and fastest-growing segments of the staffing industry,” said Peter T. Dameris, president and chief executive officer of On Assignment, Inc. “Apex Systems’ IT staffing services are complementary to those offered by our existing technology division, Oxford Global Resources. Because the offerings do not compete, the acquisition will create value for our clients, shareholders and employees by expanding our presence in the IT staffing market. The transaction also achieves On Assignment’s five-year strategic plan to reach $1 billion in annual revenue three years ahead of schedule.

Our blog note from 2/15/2012

Provides staffing services to growth industries such as the Healthcare and Technology sectors. Has reported 4 straight quarters of 100% EPS growth. Company's 2012 1st quarter EPS guidance of $0.14 to$0.17 is easily higher then analyst estimates of $0.08.  Goal of the company is to grow revenues nearly 70 % to one billion dollars in 3 years. Stock should maintain premium trailing PE of at least 30, which translates to a short term price target of $20. Shares rose sharply in today's trading session. We are hoping for a pullback to establish a position.

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