SI reels in DHS contractor

SI International Inc. plans to buy Shenandoah Electronic Intelligence Inc., a Harrisonburg, Va., company with strong ties to the Homeland Security Department.

SI International will pay $75 million in cash for SEI's stock. SEI had about $73.9 million in revenue for the 12 months ended Sept. 30 and operating profit of about $9.5 million.

The acquisition will deepen the company's presence at DHS and add complementary capabilities in the area of business process outsourcing, said Ray Oleson, chairman and CEO of SI International.

SEI was founded in 1986 by Walter Curt, and has about 1,600 employees with over 99 percent holding security clearances. DHS is SEI's biggest customer, and the company provides business process outsourcing services such as records management and applications support, secure optical card processing and analytical support.

The deal is expected to close in the next 30 to 60 days. SI International has acquired six businesses since 1999.

SI is ranked No. 66 on Washington Technology's Top 100 list of the largest federal prime IT contractors.

The investment bank Jefferies Quarterdeck represent SEI in the deal.