Ciber to acquire SCB Computer Technology
- By William Welsh
- Oct 27, 2003
Ciber Inc. is acquiring SCB Computer Technology Inc., an information technology services and consulting company, in a $55.9 million cash and stock deal, the company announced today.
Each SCB shareholder will receive $2.15 per SCB share for 26 million shares. The deal is a mix of $1.08 cash and $1.07 of Ciber common stock.
Through the agreement, Ciber of Greenwood Village, Colo., is acquiring Memphis, Tenn.-based SCB's balance sheet, which has $51 million in assets, $29.5 million in liabilities and $21.5 million of net worth as of July 31, its last public filing.
Shares in SCB, which is publicly traded on NASDAQ, closed at $1.90 on Oct. 24. The shares had a 52-week high of $2.85 and low of 55 cents. Ciber's shares were trading at about $9.22 today, up from its $9.05 close on Friday The company has a 52-week high of $11.05 and a low of $3.80.
The acquisition will provide Ciber with new clients in both the federal and state government markets. SCB recently added several significant federal government clients and currently works with more than two dozen state governments. About 50 percent of SCB's revenue is from the federal sector, with about 35 percent coming from state and local clients.
Ed Burns, president of Ciber's state and local government practice, said that following the acquisition Ciber will be working in 35 states and will be a leading vendor in 10 of those states. He said the acquisition will strengthen Ciber's vertical expertise in a number of important sectors, including child welfare systems; human resources; transportation; women, infant and children systems; and financial systems.
Ciber, a provider or IT integration and consulting services for the private and public sectors, has about 6,000 employees and annual sales of nearly $700 million.
William Welsh is a freelance writer covering IT and defense technology.