Salient Solutions buys ATS for about $73M

Salient Federal Solutions is planning a $73 million acquisition of ATS Corp., a deal that will bring new customers and capabilities to Salient.

The transaction will be financed from Salient’s equity capital commitments and debt financing, Salient announced Feb. 21.

Together the organizations will offer a full suite of capabilities that will provide end-to-end solutions for customers across federal civilian, defense and intelligence agencies, as well as commercial clients, the announcement states.

“ATSC’s long-term performance in delivering high-quality solutions and services within the federal marketplace is evident through the many long-standing relationships it has with its customers,” Brad Antle, president and CEO of Salient, said in the announcement.

With the acquisition, Salient is picking up at business at the Defense and Homeland Security departments as well as customers involved in public safety, financial, insurance and state and local entities. Some of the capabilities Salient is acquiring from ATSC include case management, federal financial systems, supply chain management, border and port security and health information systems.

ATSC experienced a rocky 2011 when in January its President and CEO Sid Fuchs left after less than one year at the helm when the board of directors announced “a process to evaluate strategic alternatives,” often a buzz term indicating a company will entertain acquisition offers.

In February, the company reported $94.1 million in 2011 revenue, a 1.7 percent decline from 2010, and a 5.1 percent decline during the fourth quarter.

Sagent Advisors Inc. served as financial advisor to ATSC in, and Squire Sanders (US) LLP served as its legal advisor. Morrison & Foerster LLP served as legal advisor to Salient.