Shareholders OK SRA's $1.9B takeover
Another hurdle cleared for acquisition by Providence Equity Partners
- By Nick Wakeman
- Jul 15, 2011
The acquisition of SRA International Inc. cleared another hurdle Friday when shareholders voted to approve the deal with Providence Equity Partners.
Valued at $1.88 billion, or $31.25 a share, the sale of SRA is now expected to close by the end of September, according to filings with the Securities and Exchange Commission. The deal must still clear some regulatory hurdles.
The acquisition was first announced in April, about three months after SRA said it had hired a financial advisor and after it had fought off a takeover bid by the U.K.-based Serco PLC. Employees were informed in January that sale offers were being considered.
Of the share votes cast, 94.7 percent of common stock and 81.3 percent of Class A common stock were voted in favor of the deal.
Shareholders will receive cash for their stock, but SRA founder and chairman Ernst Volgenau, who owns about 21 percent of SRA’s stock, will roll over some of his equity interest and continue to hold some ownership interest in the company after the transaction closes.
SRA will no longer be a publicly traded company once the deal closes.
SRA is ranked No. 30 on Washington Technology's 2011 Top 100 list of the largest government contractors.
Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.