ManTech to acquire CTX Corp.
- By Gail Repsher Emery
- Dec 06, 2002
ManTech International Corp. of Fairfax, Va., is acquiring CTX Corp. of Vienna, Va., a provider of information technology and software strategies and solutions to the U.S. national intelligence community, ManTech announced Dec. 6.
According to the merger agreement, ManTech will acquire CTX for $34 million in cash plus the repayment at closing of existing CTX debt not to exceed $1.3 million. The transaction should close by the end of 2002, according to ManTech.
ManTech provides information technology and technical services solutions to the Department of Defense and the intelligence community. Company documents state the firm expects revenue of $501.4 million for 2002. The company has more than 3,500 employees.
"The combined capabilities of CTX Corporation and ManTech will provide a new platform for growth with intelligence community customers and programs that ManTech has not traditionally supported," said Evan Hineman, ManTech executive vice president and former deputy director for science and technology at the Central Intelligence Agency.
CTX provides solutions that help customers modernize information systems; collaborate across and within government enterprises; and develop and implement data mining techniques to better use information from large-scale data repositories. Almost 94 percent of CTX's estimated $35 million in revenue for 2002 comes from intelligence community customers. About 89 percent of the 188 CTX employees hold top-secret security clearances, according to ManTech.
"CTX will bring to ManTech a talented workforce and a strong track record of success in working on priority classified intelligence community programs. CTX will also add new technical competencies complementary to ManTech's skill base," said George Pedersen, ManTech's chairman of the board, chief executive officer and president.
CTX President Tracy Graves Stevens and the senior CTX executive team will continue in their current positions after the acquisition closes, according to ManTech.
ManTech will fund the acquisition using borrowings from its credit facility and proceeds from its initial public offering, completed in February. ManTech offered 6.87 million shares and raised about $115.2 million in the IPO. Last month the company filed with the Securities and Exchange Commission for a follow-on offering of 6.5 million shares in order to fund strategic acquisitions and for working capital and general corporate purposes.
Quarterdeck Investment Partners LLC of Los Angeles acted as financial adviser to ManTech on the transaction, and Allfirst Investment Banking of Baltimore represented CTX.