BGSF to sell professional division to INSPYR for $99 million

PLANO, Texas - BGSF, Inc. (NYSE: BGSF), currently trading at $4.02 with a market capitalization of $44.88 million, announced Monday it has signed a definitive agreement to sell its Professional Division to INSPYR Solutions for $99 million in an all-cash transaction.

The deal includes BGSF’s IT Consulting, Finance and Accounting, Managed Solutions, and Near and Offshore Software Engineering practices. The transaction is expected to close during the second half of 2025, pending shareholder approval and other customary closing conditions. According to InvestingPro data, BGSF maintains strong liquidity with a current ratio of 1.76, suggesting solid financial positioning for this strategic move.

Following the transaction, Beth Garvey will step down from her role at BGSF effective July 1, 2025. Board member Cynthia Marshall will also resign on the same date. Kelly Brown, President of Property Management Division, and Keith Schroeder, Chief Financial Officer, will serve as interim co-CEOs.

"We are extremely proud of all the talented people in the Professional division who contributed to BGSF’s 18 years of success and growth since our founding in 2007," said Garvey, current Chair, President, and CEO of BGSF.

BGSF plans to use the proceeds to substantially eliminate its outstanding debt and make investments in its Property Management business. The company’s board will work with financial advisors to determine the best use of remaining funds to maximize shareholder value. InvestingPro analysis suggests the stock is currently undervalued, with a strong free cash flow yield of 38% and additional growth potential. Discover more insights and 8 additional ProTips with an InvestingPro subscription.

Trent Beekman, CEO of INSPYR Solutions, said the acquisition will strengthen INSPYR’s technology and talent solutions through new strategic partnerships.

Houlihan Lokey served as financial advisor to BGSF, with Norton Rose Fulbright US LLP acting as legal counsel. Kirkland & Ellis served as legal counsel to INSPYR.

This article is based on a press release statement from BGSF, Inc.

In other recent news, BGSF Inc. reported its Q1 2025 earnings, surpassing expectations with an adjusted earnings per share (EPS) of $0.05, compared to a projected loss of $0.08. However, the company’s revenue of $63.2 million fell short of the forecasted $67.75 million, marking an 8% year-over-year decline. Despite this revenue shortfall, BGSF’s effective cost management led to a positive EPS, reflecting its strategic restructuring efforts. The professional segment experienced a 4.2% decline, while the property management segment saw a sharper drop of 14.9%. The company remains cautiously optimistic about its future business momentum, focusing on operational efficiencies and investments in technology. Analysts from Roth Capital Partners and Taglich Brothers discussed the company’s ongoing strategic initiatives and cost reduction measures during the earnings call. BGSF’s management highlighted their commitment to sustaining growth and profitability amid macroeconomic uncertainties.

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