ATLANTA, February 23, 2017 — PRGX Global, Inc. (Nasdaq: PRGX), a global leader in Recovery Audit and Spend Analytics services, today announced it has completed its acquisition of substantially all of the assets of Cost & Compliance Associates (C&CA), a commercial Recovery Audit and Contract Compliance firm with operations in the US and the UK.
“We are pleased to announce that we have closed the C&CA acquisition. The addition of C&CA brings tremendous value to PRGX, including a rich set of global clients and a skilled and experienced team led by Bob Donohue. This acquisition further strengthens our position in commercial Recovery Audit and Contract Compliance services,” said Ron Stewart, PRGX president and chief executive officer. “As we integrate C&CA into our company, we will look to unlock opportunities to provide our expanded service offerings in Supplier Information Management (SIM) and Source-to-Pay (S2P) Analytics to C&CA’s world class clients,” concluded Stewart.
“We are excited about joining PRGX,” said Bob Donohue, founder of C&CA and Vice President – Commercial & Contract Compliance at PRGX. “We see a great cultural fit for our clients and our employees as we begin this new chapter as part of PRGX. I am very confident that our clients will find great value in our combined suite of Recovery Audit, Contract Compliance, SIM and Analytics services,” concluded Donohue.
Further details regarding the terms of the transaction will be available in the Current Report on Form 8-K to be filed by PRGX with the U.S. Securities and Exchange Commission.
In connection with the closing of the C&CA acquisition, PRGX is granting options to purchase a total of 100,000 shares of its common stock to six employees joining PRGX from C&CA, including 25,000 options to Mr. Donohue. The options will have a per share exercise price equal to the closing price of PRGX’s common stock on February 24, 2017. Subject to the respective employee’s continued employment with PRGX, the options granted to Mr. Donohue will vest ratably over three years (one-third on each anniversary of the grant date) and the remaining options will vest in full on February 24, 2020. The options also vest in full in the event of a change in control of PRGX, provided the employee has been continuously employed by PRGX until such event.
The grants were approved by the compensation committee of PRGX’s board of directors, which committee is comprised solely of independent directors, and were granted as an inducement material to the employees entering into employment with PRGX in accordance with Nasdaq Listing Rule 5635(c)(4).