AMS to acquire Vredenburg

American Management Systems Inc. is acquiring R.M. Vredenburg & Co., a privately owned provider of professional and technical services to the Defense Department and intelligence communities.

AMS has agreed to pay about $42 million in cash and assume existing debt, plus up to $4 million in performance-based payments ? payments based on meeting certain goals over the next 12 months ? and management retention agreements of up to $4.3 million.

The final purchase price will be settled at the date of closing, which is expected to be within the next 30 days.

Once completed, the acquisition will add approximately $60 million in annual revenue to AMS, provide access to additional government contract vehicles, and expand the company's presence and capabilities in the defense and intelligence markets, AMS officials said.

Vredenburg Chairman H.K. "Duke" Baboyian has been considering a sale for a few years, said Bob Kipps, director of the aerospace-defense-government group at Houlihan Lokey Howard & Zukin in McLean, Va., the investment banking firm that represented Vredenburg.

It also was a good time for Vredenburg to sell because it has been doing very well in the government market, Kipps aid. And it is "really an above-average time in the market to sell," he added. "There's more activity, more interest [and] higher prices."

Kipps said AMS decision to purchase Vredenburg is a recognition that the government space is currently a better investment opportunity than the commercial space. Computer Science Corp., with its purchase of DynCorp last year, and Perot Systems Corp., with several acquisitions, have made similar moves, Kipps said.

All of Vredenburg's management team, with the exception of its chairman, will remain with AMS, Kipps said.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close

Trending

  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Our databases track awards back to 2013. Read More

  • Navigating the trends and issues of 2016 Nick Wakeman

    In our latest WT Insider Report, we pull together our best advice, insights and reporting on the trends and issues that will shape the market in 2016 and beyond. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.