CTG reported Q3 ’23 results generally consistent with our estimates. Revenue of $71.3 million (-4.9% Y/Y) was slightly below our $72.8 million projection due to softening demand for IT services.

CTG has agreed to be acquired by Cegeka, a leading European IT solutions company, for $10.50 per share in cash. The transaction price represents a 31% premium over yesterday’s close, and on a TTM basis, reflects EV/Sales, EV/EBITDA and P/E multiples of approximately 0.5x, 10.0x and 22.9x, respectively.

CTG, Inc. (CTG) reports Q2 ’23 results on Wednesday, August 9. We expect the results to meet our estimates, which are generally consistent with consensus.

CTG’s Q1 ’23 results were mixed relative to our estimates and below consensus, which we previously noted in our “Q1 ’23 Earnings Preview” was comprised of just one other set of estimates that skewed too high for the quarter.