Markets

Navigant Divests DFLT and TAS Businesses to Ankura for $470M

An image of a stock chart displayed on a tablet
Credit: Shutterstock photo

Navigant Consulting, Inc.NCI yesterday announced that it completed the sale of its Disputes, Forensics and Legal Technology (DFLT) segment and Transaction Advisory Services (TAS) practice to Ankura Consulting Group, LLC on Aug 24.

The deal was inked on Jun 23 and announced on Jun 25. It was valued at $470 million, 11.9 times of Navigant's adjusted EBITDA.

Ankura is a portfolio company owned by Chicago-based private equity firm, Madison Dearborn Partners (MDP) and is engaged in business advisory and expert services.

David Tortorello, former head of Navigant's DFLT segment and Darin Buchalter, former head of Navigant's global Construction practice and Disputes & Economics practice outside the United States, will join Ankura's board of directors and executive committee.

Sale Part of Navigant's Transformation Efforts

The sale represents a strategic business move on Navigant's part in transforming itself from an expert-based event driven organization to a more industry focused management consulting and managed services firm. This transformation is aimed at achieving higher growth, more streamlined operations and significant capital flexibility.

Navigant expects to receive nearly $370 million of net cash proceeds from the sale (assuming payout of taxes, transaction and separation-related costs), which it plans to utilize in rewarding its shareholders through share repurchases and dividend payments and invest in strategic mergers and acquisitions and organic growth opportunities.

So far this year, shares of Navigant have gained 21.8%, significantly outperforming the 11.9% rise of the industry it belongs to.

Zacks Rank & Stocks to Consider

Currently, Navigant is a Zacks Rank #3 (Hold) stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Some better-ranked stocks in the broader Business Services sector include CRA International CRAI , FTI Consulting FCN and NV5 Global NVEE . While CRA International and FTI Consulting sport a Zacks Rank #1, NV5 Global carries a Zacks Rank #2 (Buy).

CRA International, FTI Consulting and NV5 Global has an impressive surprise history with a positive earnings surprise of 38.6%, 58.3% and 12.7%, respectively.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

NV5 Global, Inc. (NVEE): Free Stock Analysis Report

Navigant Consulting, Inc. (NCI): Free Stock Analysis Report

FTI Consulting, Inc. (FCN): Free Stock Analysis Report

CRA International,Inc. (CRAI): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

CRAI FCN NVEE

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More