IRVINE, Calif. - Resources Connection, Inc. (NASDAQ:RGP), a multinational consulting firm, announced its plans today to acquire Reference Point LLC, a consulting firm specializing in the financial services industry. The transaction is expected to close by early summer 2024, subject to standard closing conditions.
The acquisition aims to enhance RGP's consulting capabilities within the financial services sector, a domain where the company has historically invested and maintained a strong presence. The integration of Reference Point is anticipated to accelerate growth in this critical vertical by introducing its advisory solutions to RGP's clients and leveraging the firm's on-demand talent model to scale Reference Point's delivery teams.
Reference Point, established in 2002 and led by Managing Partner Scott Goeden, is recognized for its expertise in strategy, risk and regulatory compliance, digital and technology, and data and analytics within the financial services sector. The firm's unique delivery model is characterized by leadership from former industry executives and the support of top-tier consultants.
Kate Duchene, CEO of RGP, emphasized the expected benefits of the acquisition, noting the alignment of both firms' consulting services and cultural values. She highlighted the potential for RGP to extend its project execution and on-demand talent services to Reference Point's enterprise clients.
Scott Goeden of Reference Point expressed enthusiasm about joining RGP, citing the opportunity to expand their offerings and serve a broader client base through the combined consulting capabilities.
This strategic move is anticipated to provide RGP's financial services clients with a broader portfolio of high-value advisory services, while also presenting growth opportunities for Reference Point through access to RGP's client network and talent resources.
RGP, listed on the Nasdaq Global Select Market, is known for its project execution services and ability to address operational needs and change initiatives through a flexible workforce. The firm's recent recognition as one of Forbes' World's Best Management Consulting Firms for 2023 underscores its commitment to delivering impactful results for clients.
Clearsight Advisors, Inc. served as the exclusive financial advisor to Reference Point for this transaction.
The details provided in this article are based on a press release statement.
InvestingPro Insights
As Resources Connection, Inc. (RGP) gears up for its acquisition of Reference Point LLC, the company's financial footing is a key factor in its ability to pursue such strategic growth initiatives. With a market capitalization of $437.6 million and a Price to Earnings (P/E) ratio of 16.15, RGP is positioned in the market as a company with a stable valuation.
Moreover, the company's P/E ratio for the last twelve months as of Q2 2024 stands at a slightly lower 13.99, indicating a favorable earnings perspective compared to the current P/E ratio.
Investors considering RGP's long-term potential should note the company's strong shareholder yield, an InvestingPro Tip that reflects a combination of dividends and share repurchases, which can be a sign of a company's commitment to returning value to its shareholders.
In addition, RGP's financial health is further evidenced by its ability to hold more cash than debt on its balance sheet, providing it with financial flexibility.
Another InvestingPro Tip for RGP is that the company has maintained dividend payments for 15 consecutive years, demonstrating a consistent return to shareholders. This, coupled with a dividend yield of 4.29%, could be particularly attractive to income-focused investors, especially in a volatile market environment.
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