Keane to Close Acquisition in November
- By William Welsh
- Sep 18, 2001
Keane Inc. and Metro Information Services Inc. have been cleared by the Federal Trade Commission to move forward with Keane's planned acquisition of Metro.
The companies were notified by the commission Sept. 18 that they have received early termination of a mandatory 30-day waiting period for the proposed acquisition.
The FTC agreed to early termination of the 30-day Hart-Scott-Rodino waiting period, during which the commission examines each proposed transaction to ensure it will not create a monopoly. Once the commission has completed its examination, it may waive the waiting period and allow the acquisition to proceed.
Meanwhile, the companies have been informed that the Securities and Exchange Commission is reviewing the registration statement filed in connection with the transaction, which is expected to close in November, according to the companies.
Keane Inc. of Boston announced Aug. 21 that it had signed a definitive agreement to purchase Metro of Virginia Beach, Va., in a stock-for-stock transaction valued at about $135 million.
The transaction has been approved by Keane's and Metro's boards of directors, but still remains subject to approval by Metro shareholders, the companies said.
Metro provides a wide range of information technology consulting services and solutions, including application systems development and maintenance, IT architecture and engineering, systems consulting, project outsourcing and general support services.
Metro has more than 2,700 employees and annual revenue of $313 million, while Keane has more than 8,200 employees and annual revenue of $872 million, according to Hoover's Online of Austin, Texas.
William Welsh is a freelance writer covering IT and defense technology.