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Huron acquires AXIA to bolster supply chain services

Published 04/12/2024, 01:30 am
HURN
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CHICAGO - Huron (NASDAQ: HURN), a global professional services firm with a market capitalization of $2.03 billion and an impressive "GREAT" financial health rating according to InvestingPro, announced the acquisition of AXIA Consulting, a provider of supply chain consulting and technology solutions. The move aims to enhance Huron's supply chain capabilities, particularly in the industrials, manufacturing, retail, and healthcare sectors, and to expand its Oracle (NYSE:ORCL) supply chain management (SCM) offerings. The acquisition also broadens Huron's technology portfolio with advanced Microsoft (NASDAQ:MSFT) capabilities. This strategic expansion comes as Huron demonstrates solid growth, with revenue increasing by 7.51% over the last twelve months and maintaining a healthy current ratio of 1.61, indicating strong operational efficiency.

Mark Hussey, CEO and president of Huron, expressed enthusiasm for the acquisition, stating it will enable Huron to assist clients in building more resilient supply chains and operations, thereby strengthening their competitive advantage and driving profitable growth.

The integration of AXIA's expertise is expected to deepen Huron's market presence by combining strengths in supply chain process optimization, people transformation, and digital leadership. This strategic move is anticipated to deliver impactful solutions at every step of clients' business transformations.

Ed Mueller, Chairman and former CEO of AXIA, highlighted the enhanced ability to deliver superior supply chain solutions that the acquisition brings, as well as additional growth opportunities for the AXIA team. Justin Browder, CEO of AXIA, mentioned that their values and commitment align perfectly with Huron, and he anticipates leveraging combined expertise to deliver exceptional solutions.

AXIA has a history of aiding various organizations, including those in manufacturing, retail, distribution, healthcare, education, financial services, and utilities, in solving complex challenges through organizational transformation, process optimization, and technology modernization.

The acquisition will see all members of the AXIA team, which includes approximately 130 client-facing employees, join Huron. Both companies are described as values-led, people-focused organizations dedicated to delivering client success through collaboration and integrity.

The financial terms of the acquisition were not disclosed. It is expected that the significant majority of AXIA's revenue will be included in Huron's Commercial Segment. Clearsight Advisors acted as the exclusive financial advisor to AXIA in the transaction. Trading at a P/E ratio of 26.37, Huron has seen three analysts revise their earnings estimates upward for the upcoming period, according to InvestingPro, which offers comprehensive analysis through its Pro Research Reports covering 1,400+ US stocks, including detailed insights into Huron's valuation and growth prospects.

This news is based on a press release statement.

In other recent news, Huron Consulting (NASDAQ:HURN) Group reported a 3% increase in its third-quarter 2024 revenue compared to the same period in 2023. The company also saw a 21% rise in adjusted earnings per share year-over-year, achieving record sales bookings. Despite experiencing project work delays which shifted revenue from Q3 to Q4, the firm remains optimistic about its growth trajectory, particularly in its Commercial and Healthcare segments. Full-year revenue before reimbursable expenses guidance was narrowed to $1.47 billion to $1.49 billion, and the adjusted diluted EPS forecast was raised to $6.00 to $6.20. The company is also anticipating mid-teens EBITDA margins in 2025, driven by utilization improvements and favorable demand. However, project delays shifted approximately $5 million to $10 million in expected deals from Q3 to Q4. Despite these challenges, Huron Consulting Group's recent developments show a strong focus on future growth and resilience in a dynamic market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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