ManTech to acquire IDS

ManTech International Corp. of Fairfax, Va., will acquire Integrated Data Systems of Chantilly, Va., for $62.7 million in cash, ManTech officials announced this week.

ManTech provides IT and technical services solutions to the Department of Defense and intelligence community customers. The company has more than 4,400 employees and had $431.4 million in revenue in 2001.

IDS provides technology solutions and products in four core areas: software development, systems engineering/networking, information assurance, and government acquisition and procurement support software. Its customers include civilian and military intelligence organizations such as the CIA, National Security Agency, Defense Intelligence Agency and Department of Defense special programs. The firm had about $40 million in revenue in 2002, up from $21 million in 2001.

IDS has developed secure, advanced messaging and collaboration applications and solutions in support of national security networks and systems. More than 80 percent of IDS' 230 employees hold top secret security clearances with special access to sensitive compartmented information programs, according to a statement from ManTech.

"The IDS team brings ManTech access to new intelligence and DoD customers along with outstanding software and IT skills that will benefit the entire enterprise," said Evan Hineman, president of ManTech's National Security Solutions Group. After the acquisition closes, senior IDS executives will continue in their current positions, and IDS will operate under ManTech's National Security Solutions Group, ManTech officials said.

The IDS acquisition will be ManTech's third since its initial public offering in February 2002 and the first since completing a follow-on public offering in December 2002. ManTech will fund the acquisition using proceeds from the follow-on public offering. ManTech acquired Aegis Research Corp. of Falls Church, Va., in August 2002 and CTX Corp. of Vienna, Va., in December 2002. Both companies provide information technology and technical services support primarily to DoD and intelligence community customers.

"Over the past year, through internal expansion and the acquisition of Aegis Research, CTX, and now IDS, ManTech has significantly broadened its capabilities in support of priority national security programs to take advantage of favorable spending trends within the DoD and intelligence community," said George J. Pedersen, ManTech's chairman of the board, chief executive officer and president.

Robert Coleman, founder, president and CEO of IDS, said his firm's acquisition by ManTech will allow its business to grow quickly while maintaining high-quality customer service.

ManTech advised that the transaction is expected to close within 20 days. Quarterdeck Investment Partners LLC of Los Angeles acted as financial advisor to ManTech on the transaction. BB&T Capital Markets of Richmond, Va., represented IDS.

The acquisition should add 5 cents to 7 cents to ManTech's earnings per share in 2003, said John Moore Jr., ManTech's executive vice president and chief financial officer.