Perot Systems to purchase Soza
- By Patience Wait
- Feb 05, 2003
Perot Systems Corp. is acquiring Soza & Company Ltd., in a move that will add about $137 million in annual revenue to its government business, Perot announced today.
Perot Systems, Plano, Texas, is acquiring Soza for $75 million in cash, plus up to $32 million in cash and stock if certain performance targets are met.
The acquisition may be completed by the end of February, said Greg Bedner, president of the government services unit.
Soza, based in Fairfax, Va., had revenue of $137 million in 2002. The company was ranked 81st in the Washington Technology 2002 Top 100 list of federal prime contractors.
Perot entered the government market with its acquisition of Bedner's company, ADI Technology Corp., last July. With the Soza acquisition, the unit will more than double in size, from 600 to 1500 employees. The government services group projects revenue of more than $200 million in 2003, officials said.
"Federal IT services is a high priority market for Perot Systems and our continued investment in this area demonstrates our commitment to growing this business both organically and through strategic acquisitions," said Ross Perot Jr., president and CEO of Perot Systems.
Bedner said the acquisition will strengthen the company's position in the homeland security market. Perot Government Services already has contracts with the Immigration and Naturalization Services and the intelligence community, while Soza counts the Coast Guard among its customers.
"The INS and Coast Guard are going to be a primary focus of Mr. Hutchison's organization," Bedner said, referring to Asa Hutchison, the new undersecretary for border and transportation security in the Homeland Security Department. "The agencies we're supporting are making that move, so when we talk about our homeland security offerings we're not talking about reinventing ourselves, we're talking about our current clients and following where they're going."
Legg Mason Wood Walker Inc., Baltimore, advised Soza in this transaction.