William Blair & Company initiated research coverage of Information
Services Group, Inc. (Nasdaq:III) ($5.00) with an Outperform rating and
an Aggressive Growth company profile. Information Services Group was
formed in 2006 as a special purpose acquisition corporation and raised
more than $250 million with the purpose of acquiring an
information-based services company. In November 2007, the company
completed the acquisition of TPI, a market leader in global sourcing
advisory, to serve as its initial platform business.
Analyst Brandon Dobell estimated the company would generate diluted cash
earnings per share of $0.58 in 2008 and $0.74 in 2009.
“We believe that Information Services Group,
through the acquisition of TPI, will be in a strong position to take
advantage of projected continued growth in global outsourcing services,
as companies continue to transition critical IT and business processes
to outside vendors and offshore locations,”
Dobell said. “ISG’s
business model provides an opportunity to drive attractive cash flow
through strong returns on incremental invested capital and operating
leverage. We believe the company’s experienced
management team is well positioned to drive operating margin improvement
at TPI as well as expand the corporation’s
existing operating platform through strategic acquisitions of other
information-based services companies.”
William Blair & Company, L.L.C. intends to seek or expects to receive
compensation for investment banking services from this company in the
next 3 months.
William Blair & Company, L.L.C. is a market maker in the security of
this company and may have a long or short position.
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William Blair & Company, L.L.C.
Tony Zimmer, 312-364-8611
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