MTC closes national security deal
- By Roseanne Gerin
- Jul 01, 2004
MTC Technologies Inc. has completed its acquisition of Command Technologies Inc., the company said today. MTC is paying $47 million for CTI, but will receive an income tax benefit of $9 million, making the net cost of the deal $38 million.
The Dayton, Ohio, company announced Tuesday that it signed an agreement to purchase all outstanding shares of CTI.
Based in Warrenton, Va., CTI is a privately held company with approximately $36 million in revenue. It provides professional and technical services primarily to the Defense Department and national security agencies.
MTC expects CTI to add approximately $18 million-$19 million in revenue to its 2004 second half results after the deduction of the acquisition costs.
"This acquisition is MTC's first major step in support of our objective to expand our presence in the national security arena," said Raj Soin, MTC's chairman and founder. "With this union, we should significantly enhance our mutual abilities to make significant inroads in this important market."
On Oct. 1, Michael Cauldwell, CTI's executive vice president and chief operating officer will become the CTI's president and COO as well as vice president of MTC. Don Rose, CTI's founder and chairman, and Lynn Kravitz, CTI's chief executive officer, will retire after a brief transition period.
MTC of Dayton, Ohio, provides systems engineering, IT, intelligence and program management services to the federal government. With the CTI acquisition, the company now employs 1,900 workers in more than 30 locations. MTC posted 2003 revenue of $188.7 million and was ranked No. 47 on Washington Technology's Top 100.