SCB to buy Remtech Services
- By Patience Wait
- Feb 05, 2003
SCB Computer Technology Inc. of Memphis, Tenn., is acquiring Remtech Services Inc., Newport News, Va.
The acquisition, announced Feb. 5, is being financed through SCB's existing $27.5 million credit facility and seller debt. As a part of the purchase, the maturity of the credit facility was extended one year through July 2007.
RSI, certified as a small disadvantaged business by the Small Business Administration, expects to report revenue of more than $29 million this year. The company employs 425 people, providing information technology solutions and other business processes exclusively to federal agencies, including the Army, Navy, Air Force and the departments of Health and Human Services, Energy and Interior.
SCB provides IT consulting, outsourcing and staffing services to federal, state and local agencies and commercial customers. The company had about 800 employees in fiscal 2002 and reported revenue of $105 million.
Douglas Lising, president and chief executive officer of RSI, said his company had been seeking to merge with a larger organization whose industry focus and core competencies complemented its own.
"We are impressed with SCB's commitment to the government information technology sector," Lising said. "We look forward to working with SCB in expanding our core competencies of consulting and outsourcing, especially with agencies of the federal government."
Aronson Capital Partners LLC, an investment bank based in Rockville, Md., served as adviser to RSI in the transaction.