Advanced Technology Systems sale finally completed
By
Nick Wakeman
Federal Services Acquisition Corp., which was created to acquire government contractors, has finally closed its first deal.
Federal Services Acquisition Corp., which was created to acquire government contractors, has finally closed its first deal.
Announced last April, the acquisition of Advanced Technology Systems Inc. of McLean, Va., closed earlier this week. The deal, which includes cash and stock as well as performance payments over the next two years, is valued at $124 million.
"Getting to this point has been difficult and time-consuming, but we believe the completion of the acquisition of ATS and the implementation of our business strategy will be rewarding for all of our core constituents ? stockholders, employees and customers," said Edward Bersoff, who on the closing of the deal becomes ATS' chairman, president and CEO.
Federal Services Acquisition, which has changed its name to ATS Corp., was formed through an initial public offering of stock in October 2005 as a special purpose acquisition vehicle to buy operating companies in the federal market. The company trades under the ticker FDSA on the over-the-counter bulletin board. It closed Tuesday at $4.95, down 26 cents from Monday.
ATS is a company with a 28-year track record in the government market with customers in the Air Force, Defense Logistics Agency, Pension Benefit Guarantee Corp., and departments of Defense and Housing and Urban Development.
The company has more than $100 million in annual revenue. The purchase price includes an initial payment of $84 million in cash and $1 million in stock. Another $39 million will be paid over the next two years if certain performance goals are met.