General Dynamics buys Creative Technology

General Dynamics Corp. of Falls Church, Va., acquired privately held Creative Technology Inc., a Herndon, Va., information technology and consulting firm, officials of General Dynamics announced Monday.

Terms of the deal were not disclosed.

The acquisition will strengthen General Dynamics Network Systems' position in providing IT services to the U.S. intelligence community, according to company officials.

Creative Technology has approximately 300 employees holding high-level security clearances. The company primarily supports the intelligence community and the Department of Defense by delivering systems and network engineering, integration, software development, operations and technical consulting, information assurance, intelligence analysis and knowledge management services.

Creative Technology will become part of the 4,000-employee General Dynamics Network Systems, a Needham, Mass., business unit in the General Dynamics Information Systems and Technology group.

Network Systems designs, builds, integrates, operates and maintains complex, secure networks and supports fixed and deployable command, control, communications and intelligence networks for intelligence customers. It is the prime contractor for the renovation of the communication networks at the Pentagon, and for other government telecommunications and IT infrastructure programs around the world.

"Creative Technology complements our service offerings and allows us to provide a broader array of IT services and solutions to defense and intelligence customers worldwide," said Michael Chandler, president of General Dynamics Network Systems.

James Flannery, president of Creative Technology, will continue to lead the Creative Technology group in the Network Systems organization.

"We are excited about becoming part of General Dynamics' expanding presence in the intelligence community," he said.

General Dynamics employs approximately 56,000 people worldwide and had 2002 revenue of $13.8 billion. The company builds land and amphibious combat systems, mission-critical information systems and technologies and shipbuilding and marine systems.

Quarterdeck Investment Partners LLC of Washington was the financial adviser to Creative Technology.

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