DynCorp, TekInsight Merge State Units

TekInsight.com Inc. and DynCorp plan to merge their state and local operations, creating a combined company of 400 employees with annual revenue approaching $100 million.

DynCorp Management Resources will become part of TekInsight.com, which will have a controlling interest over the new company, said DynCorp of Reston, Va.

TekInsight of Irvine, Calif., will issue shares of newly created Class B Common Stock as consideration for the transaction. If the deal is approved by TekInsight shareholders, DynCorp will own about 40 percent of TekInsight.

The DynCorp unit, which was formed in 1996, provides a variety of information technology and business process outsourcing services and brought in $27 million in 2000. It is expected to bring in $50 million in $2001.

TekInsight's services include consulting, infrastructure planning and deployment, application development and legacy integration and support.