NOTE 3ACQUISITION Alsbridge Acquisition On December 1, 2016 (the Alsbridge Acquisition Date), a wholly-owned subsidiary of Information Services Group, Inc. (ISG or the Company) executed an Agreement and Plan of Merger (the Alsbridge Agreement), by and among Alsbridge Holdings, Inc., a Delaware corporation (Alsbridge), ISG Information Services Group Americas, Inc., a Texas corporation (Parent), Gala Acquisition Sub, Inc., a Delaware corporation and wholly-owned subsidiary of Parent (Acquisition Sub), and LLR Equity Partners III, L.P., solely in its capacity as representative of the equity holders of Alsbridge, pursuant to which Acquisition Sub merged with and into Alsbridge with Alsbridge becoming an indirect wholly-owned subsidiary of ISG (the Merger). Under the terms of the Alsbridge Agreement, Parent paid to the former security holders of Alsbridge merger consideration with an aggregate value equal to approximately $74.0 million, consisting of $56.0 million in cash, an aggregate of $7.0 million in unsecured subordinated promissory notes and 3.2 million shares of ISGs common stock, par value $0.001 per share (ISG Stock) (collectively, the Merger Consideration). The stockholders of Alsbridge also could receive contingent consideration in an aggregate amount up to approximately $2.5 million based upon the collection of certain accounts receivable. The fair value of this contingent consideration has been determined to be $1.5 million. Pursuant to the terms of the Alsbridge Agreement, Alsbridge will indemnify the Company for uncertain tax positions and tax liabilities that were incurred by Alsbridge. The Company has recorded these tax liabilities and related indemnification asset in the amount of $2.0 million as of the acquisition date. This was a complementary acquisition which combines ISG research, digital, sourcing and managed services with Alsbridges network carrier services, robotic process automation and incremental sourcing advisory capabilities. The combined firm will offer a broader