Stanley accelerates growth with Oberon buy

Stanley Inc. will acquire Oberon Associates Inc., a provider of engineering, intelligence operations and information technology services, for $170 million in cash.

The transaction is in line with Stanley's acquisition strategy that calls for the development of new customers, contract vehicles and service offerings, said Phil Nolan, Stanley's president, chairman and chief executive officer.

The acquisition "reinforces Stanley's strategy of expanding our presence in key markets positively impacted by the base realignment and closure process?.We also believe the acquisition will provide meaningful cross-selling opportunities as we seek to continue our strong record of growth," he said.

Oberon is expected to generate revenue of about $80 million in its fiscal year ending June 30, Stanley officials said. Moving forward, Oberon is expected to meet or exceed Stanley's annual organic growth goals of 10 to 15 percent.

Oberon, of Manassas, Va., has contracts with the Army, Air Force, Defense Information Systems Agency, Transportation Security Administration and several intelligence agencies. The company's core capabilities are biometrics, intelligence, communications engineering, IT and enterprise data management. Oberon has more than 600 employees and 10 regional offices in the United States and seven countries overseas.

The transaction likely will close in the company's second fiscal quarter, which ends Sept. 30, Stanley officials said.

The Vienna, Va.-based investment banking firm KippsDeSanto and Co. served as exclusive financial adviser to Oberon on the transaction.

Oberon ranks No. 1 on Washington Technology's 2007 Fast 50 list, which ranks the fastest growing small businesses in the government market. The company had a compound annual growth rate of 191.75 percent.

Stanley ranks No. 48 on Washington Technology's 2008 Top 100 list of the largest federal government prime contractors.