Fairfax, Virginia-based ManTech will pay all cash to acquire Chantilly, Virginia-based IDS for $57.7m, net of cash, plus estimated purchase price adjustments of approximately $5m to be finalized after closing. It claims the deal will be accretive to earnings, adding between $0.05 and $0.07 per share in full year 2003. ManTech said it would fund the purchase from the proceeds of its follow-on public offering made last December from which it raised $16.6m.
IDS, which grew revenue 80% in full-year 2002 to $40m, provides software development, systems engineering, networking and systems integration services for clients including the Defense Intelligence Agency, the Department of Defense, as well as the CIA, NSA, FBI, Executive Office of the President, United States Congress, and the US Postal Service.
IDS claims to be one of Microsoft’s principal certified partners using US Government intelligence community programs where it has 80% of its 230 employees holding top secret security clearances. The company now expects to grow revenue 15% in 2003 to $46m and to turn in an EBITDA margin of at least 10%.
The deal follows the $35.3m acquisition last December of CTX Corp, an IT services firm for the national intelligence community. The company, which employs 188 people, provides software and services including knowledge management, computer engineering, network forensics and generates 93.5% of its predicted full year 2002 revenue of $35m is from clients in the intelligence community.
In July 2002, ManTech also purchased Aegis Research Corp for $70m in cash, an IT services company targeting the national security agencies with around 500 staff, and clients including Department of Defense (DoD), National Reconnaissance Office (NRO), the United States Air Force, and The Joint Strike Fighter Program Office.
Source: Computerwire
