SI International to Buy Private IT Integration Company
Source Associated Press
RESTON, Va. (AP) -- SI International Inc., a provider of technology services primarily to government clients, said Wednesday that it is buying privately held Bridge Technology Corp. for $30 million in an effort to broaden its client base to include intelligence agencies.
SI shares rose 86 cents, or 3 percent, to $29.80 on the Nasdaq following the report.
The companies said they have signed a definitive agreement and plan to close the cash deal within 30 days, assuming approval by SI's board and the conclusion of a due diligence investigation. SI is funding the purchase with cash on hand and borrowings from its credit line.
Bridge Technology, based in Columbia, Md., manages programs, acquisitions, logistics, systems engineering and software engineering for government intelligence agencies. The company has about 140 employees, 90 percent of whom hold security clearances. SI said Bridge, which was established in 2000, posted revenue of $22.2 million during the twelve months ended Sept. 30.
"We believe that the acquisition of Bridge Technology will establish a solid foundation for SI International to take advantage of the growth in the intelligence sector," SI chairman and chief executive Ray Oleson said in a news release. The company also said it hoped the acquisition would strengthen and expand its "mission-critical" operations, which include military personnel processing, engineered products and systems management. Lou Gold, chief executive of Bridge Technology, said the smaller company will benefit from SI's resources and its expertise in mission-critical information technology services.