AMS finishes acquisition of Vredenburg

American Management Systems Inc., a business and information technology consulting firm, completed its acquisition of R.M. Vredenburg & Co., a provider of professional and technical services to the Department of Defense and U.S. intelligence organizations.

Fairfax, Va.-based AMS paid about $42 million in cash for Reston, Va.-based Vredenburg. AMS said it would also assume about $2.7 million in debt, up to $4 million in performance-based payments, and management retention agreements of up to $4.3 million. The deal closed Aug. 1.

The purchase adds critical infrastructure protection capabilities, document management technologies and program management expertise to AMS' offerings in financial management, acquisition and procurement, business intelligence, enterprise architecture and technology consulting, according to AMS officials.

The purchase expands AMS' national security capabilities and continues the company's strategy of growth through acquisitions, AMS officials said. Vredenburg's clients include the Army, Navy and the departments of Justice, State and Treasury.

About 90 percent of Vredenburg's 300 professional staff has government security clearances at the secret level or higher, and about 30 percent hold a top-secret clearance.

According to AMS, Vredenburg will add about $60 million in annual revenue, provide access to additional government contract vehicles and expand AMS' presence in the defense and intelligence markets.

For the 12 months ending in June, Vredenburg had revenue of approximately $58 million. AMS, ranked 46 on Washington Technology's 2003 Top 100, had revenue of about $987 million last year and employs about 6,300 people.