DRC closes Kadix buy

Dynamics Research Corp. has completed its acquisition of management consulting firm Kadix Systems LLC. The $42 million cash purchase, which was announced July 31, includes the potential for an additional $5 million to be paid if certain goals are achieved.

Kadix, of Arlington, Va., specializes in organizational change, human capital, information technology, and learning and organizational development. Its clients include the Homeland Security Department, the Marine Corps, military medical health and federal civilian agencies.

The acquisition of Kadix and its 270 employees more than doubles Dynamics Research's presence in the Washington area, said Jim Regan, DRC's chairman and chief executive officer. "Kadix Systems' customer presence significantly increases the percentage of our business mix focused on high-growth markets, a key strategic focus for DRC," he said.

Kadix provides more than $20 million worth of annual services through task orders under DHS' Enterprise Acquisition Gateway for Leading Edge Solutions and Program Management Strategic Sourcing contracts, DRC officials said.

New task orders received in 2008 include a five-year, $22 million order for IT strategic planning for DHS' Immigration and Customs Enforcement's Strategic Development Division and a $9.9 million, four-year order providing financial systems services to the Transportation Security Administration.

With the addition of Kadix, DRC, of Andover, Mass., has 109 government bids awaiting award with an estimated contract value of $233 million, company officials said.