It paid nearly $27 million for the Fort Meade-based Zytel and almost $53 million for Signature Government Solutions in Herndon.
Those purchases “kind of tapped them out, so they really needed some dry powder to continue on the acquisition campaign . . . to maintain their growth and maintain their competitiveness,” Kipp said.
Hillen said Ares’ backing could potentially accelerate GTEC’s plans to buy more companies as it seeks to grow organically and through acquisitions.
The company is focusing on high-end technology companies that work in areas like cybersecurity and intelligence, surveillance and reconnaissance.
Boy, if you owned any GTEC stock you probably experienced a little bump as a result from this acquisition news. I also included the stock screener for GTEC so you can see for yourself what Ares Management is seeing in Global.
This company is doing well, and the infusion of private-equity will help them to continue to do well. Who knows what companies will be in Global’s sights for future purchase, but if you look at their past purchases dealing with cyber security, we probably can deduct that we will see more of the same in the future. Cyber security is huge business, and companies are all jockeying for position in this evolving market.
Of course the reason I put this up on the blog is because GTEC is also related to Global Strategies Group.(From website: Our former wholly-owned North American subsidiary, Global Defense Technology & Systems, Inc. GTEC, recently completed an initial public offering. GLOBAL continues to be a significant shareholder of GTEC.) Although I don’t think this news will really impact you guys out there too much, unless you owned stock in GTEC. Thanks to a reader for giving me the heads up. –Matt
Private equity firm will acquire GTEC of McLean
By Marjorie CenserMonday, March 7, 2011
McLean-based Global Defense Technology & Systems, a growing contractor primarily focused on intelligence systems and services, announced last week it will be acquired by an affiliate of private-equity firm Ares Management.
The company is the latest to be picked up by private equity, which has played an increasingly large role in the defense industry as it adjusts to anticipated reduced budgets and new Pentagon guidelines on conflicts of interest.
The buy “highlights the capital market renaissance that’s occurred over the last 12 months,” said Bob Kipps, managing director of the McLean-based investment firm KippsDeSanto.
The definitive agreement reached by GTEC, as the company is known, and Ares, based the deal on a share price of $24.25, a nearly 51 percent increase over the company’s $16.08 close the day before the agreement was announced. The total deal value is approximately $315 million, including the assumption of debt and prior to expenses, GTEC said.
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