Sensytech, Argon make deal to become one
- By Roseanne Gerin
- Jun 08, 2004
Sensytech Inc. and Argon Engineering Associates Inc., two companies that provide technologies to U.S. defense and intelligence markets, have agreed to merge in an all-stock transaction, the companies said yesterday.
Argon Engineering's shareholders will receive two shares of Sensytech common stock for each share of Argon common stock outstanding, giving them ownership of approximately 66 percent of the combined company on a fully diluted basis.
The companies expect to close the deal in September pending approval by shareholders of both firms and government regulatory reviews.
Based in Newington, Va., Sensytech develops and manufactures electronic surveillance, communications and imaging systems. Its federal clients include the Defense Department and other government agencies and major domestic prime defense contractors. The company employs 220 workers and had revenue of $53.2 million for its fiscal year ended Sept. 30, 2003, nearly 81 percent of which came from federal-sector sales.
Argon Engineering of Fairfax, Va., is a privately held company with 350 employees that designs and develops communications systems that search, identify and capture signals. Its products include sensor development, data collection and decision support, mainly for military purposes. The company's fiscal 2004 revenue is approximately double that of Sensytech, the companies said.