ManTech buys Army contractor STI

ManTech International Corp. will pay $242 million in cash to acquire Sensor Technologies Inc., a provider of mission-critical systems engineering and command, control, communications, computers, intelligence, surveillance and reconnaissance services for the Defense Department.

The U.S Army is STI’s largest customer, with several contracts including a prime position on the S3 indefinite-delivery, indefinite-quantity contract, from which it has received more than $2.5 billion in task orders to date, according to a ManTech statement today.

The Red Bank, N.J., private company specializes in services supporting program management offices across the Army in the areas of biometrics, human terrain systems, communications, and intelligence, surveillance and reconnaissance, the statement said.

STI generates solid operating margins and expects to produce approximately $340 million in revenue in 2009 and $450 million in 2010, the statement added.

“This acquisition is consistent with our long-term strategy to broaden our footprint in the high-end defense and intelligence market,” said George Pedersen, chairman and chief executive officer of ManTech International, in the merger announcement.

“With the defense appropriation bill on track and a clear mission and strategy for Afghanistan, this acquisition allows us to provide more direct support to the U.S. Army as it continues its overseas operations and prepares for the next generation of national security,” he said.

The acquisition is subject to various closing conditions and approvals, and is expected to be completed early in 2010, the ManTech statement said.