Highlights

  • BGSF’s Professional Division to be sold to INSPYR Solutions for $99 million in cash
  • CEO Beth Garvey and board member Cynt Marshall to step down post-transaction.
  • BGSF to use sale proceeds to reduce debt and invest in the Property Management Division

BGSF, Inc. (NYSE: BGSF) provides consulting, managed services, and workforce solutions across IT, finance, and property management sectors. The company has entered into a definitive agreement to sell its Professional Division to INSPYR Solutions, a portfolio company of A&M Capital Partners, for a total consideration of USD 99 million in an all-cash transaction. The deal, which covers BGSF’s IT Consulting, Finance and Accounting, Managed Solutions, and Near and Offshore Software Engineering practices, is expected to close in the second half of 2025, pending shareholder approval and standard regulatory and contractual conditions.

The sale marks a significant shift in BGSF’s operational focus, with the company planning to realign around its Property Management Division post-divestiture. Interim leadership will be provided by Kelly Brown, current President of the Property Management Division, and Keith Schroeder, Chief Financial Officer, who have been appointed as interim co-CEOs effective July 1, 2025. This leadership change follows the planned departure of current Chair, President, and CEO Beth Garvey, who will step down from her role upon the transaction's closure. Board member Cynthia (Cynt) Marshall will also resign on the same date.

BGSF has stated that it intends to use the net proceeds from the transaction to substantially eliminate its outstanding debt and to support investments within its Property Management business. Additional proceeds may be allocated based on evaluations by the company’s board and financial advisors, who will assess the most suitable strategies to enhance shareholder value. The company continues to assess broader strategic alternatives alongside this transition.

Board Director Doug Hailey acknowledged Garvey’s contributions over her 12-year tenure, noting her leadership through multiple acquisitions and organizational changes. Garvey led the company’s expansion of its services and technology initiatives during her term as CEO.

Trent Beekman, CEO of INSPYR Solutions, commented on the upcoming acquisition, stating that the addition of BGSF’s professional workforce divisions would expand INSPYR’s technology and talent offerings. The company aims to integrate the incoming teams into its operations as it continues to develop its staffing and managed services capabilities.

The agreement is expected to reshape both companies’ business strategies. For BGSF, the divestiture allows a streamlined operational model and reallocation of capital towards areas deemed more aligned with its evolving priorities. For INSPYR, the acquisition introduces additional verticals and services that fit within its portfolio.

The board has confirmed that Houlihan Lokey acted as BGSF’s exclusive financial advisor for the transaction, while legal counsel was provided by Norton Rose Fulbright US LLP. INSPYR Solutions was represented by Kirkland & Ellis LLP.