Orion Innovation, a private equity-owned digital transformation services rm, is actively acquiring companies that bolster its data and cloud capabilities to help attract enterprise clients, particularly in its growth verticals of healthcare, financial services, retail and consumer, CEO Raj Patil said.
Since its acquisition in October by One Equity Partners (OEP), the former in-house middle market PE fund of JPMorgan, Orion has made rapid moves to scale via M&A, the executive said.
The Edison, New Jersey-based company is currently in the process of an acquisition, and, also, engaged in different stages of the buy cycle for future potential targets, he added.
Earlier this month, Orion acquired New York-based user experience strategy and design rm, Behavior Design, and Cabeus, a Plainsboro, New Jersey-based digital transformation company focused on the life sciences industry. Behavior Design was an attractive target because it brings Orion’s sector-agnostic design capability, while Cabeus adds life sciences-specic access and expertise, Patil said.
In a transaction which, the executive said, doubled its size, Orion merged with Zurich-based outsourced product development services company, MERA Group, in March. According to the Wall Street Journal, the MERA merger increased Orion’s EBITDA to about USD 60m, or double the USD 30m it earned at the time of its sale to OEP .
For its upcoming acquisitions, Orion is looking at both transformational acquisitions, like MERA, and smaller, bolt-on buys, like Behavior Design and Cabeus, Patil said.
In evaluating targets, Orion leans on OEP’s M&A diligence and execution expertise, the executive continued, adding, however, that the company also employs external advisors, and is open to solicitations.
Founded in 1993, the company both consults clients and executes on the proposed innovation strategy, which can be as quick as developing an app, or as complex as reconguring an institutional infrastructure for the digital age, Patil said.
Orion has 3,500 employees across 12 locations globally, and supports around 80 Fortune 1000 enterprise clients in their digital transformation efforts. To date, the company’s clients have primarily spanned the media, telecommunications, sports, nancial services, education, manufacturing and healthcare industries.
The executive named Newton, Pennsylvania-based EPAM Systems (NYSE:EPAM), Dublin-based Accenture [NYSE:ACN], and San Jose, California-based GlobalLogic as some of its nearest competitors.
According to its website, OEP invests in healthcare, industrials and technology services companies with revenue of USD 100m to USD 800m, and EBITDA between USD 10m to USD 70m.