ManTech buys SRS Technologies

ManTech International Corp. will acquire privately held SRS Technologies Inc. for $195 million in cash.

The acquisition is the largest in the company's 39-year history and extends its presence in the national security marketplace by providing advanced capabilities in command, control, communications, computers, intelligence, surveillance and reconnaissance; systems engineering; modeling and simulation; and other advanced technology services and solutions.

"This acquisition is consistent with ManTech's growth strategy to broaden our footprint in the high-end intelligence, homeland security and defense markets," said George J. Pedersen, ManTech's chairman and chief executive officer.

The purchase price includes a $36 million escrow account that will be available to pay off indemnification claims for three years. If unused, the money will go back to shareholders, Joe Cormier, a ManTech spokesman.

SRS of Newport Beach, Calif., has 800 employees, 75 percent of whom hold security clearances, and more than 40 percent hold top secret or higher-level clearances, ManTech said.

More than 85 percent of SRS' revenue is from the Defense and Homeland Security departments and intelligence community. It specialties include space-based radar and communications; chemical, biological, conventional and nuclear weapons detection and defeat programs; imagery intelligence; and aeronautic, space and information systems development.

As of March 2, SRS had a $750 million backlog of orders. Revenues are expected to reach $175 million for the fiscal year ending August 2007.

ManTech expects to compete the acquisition in second quarter 2007.

ManTech of Fairfax, Va., has more than 6,000 employees and had annual sales of $1.1 billion in fiscal 2006. The company ranks No. 21 on Washington Technology's 2006 Top 100 list of the largest federal IT contractors.