Dynamics Research Corp. finishes acquisition, gets financing

Dynamics Research Corp. completed the acquisition of the government division of Impact Innovations Group LLC, officials of DRC announced today.

DRC officials also said today that the company had received $100 million in financing from its bank group, including a $55 million loan for the purchase of the Impact Innovations division.

The financing includes a $37 million revolving credit agreement for working capital and an $8 million mortgage term loan on the company's headquarters. The bank group was led by Brown Brothers Harriman & Co. of New York.

DRC of Andover, Mass., paid $53.4 million in cash for Impact Innovation's government division. In 2003, the division won federal contracts worth more than $165 million, according to Atlanta-based Impact Innovations.

The acquisition will improve DRC's IT services and adds intelligence capabilities to the company, as well as new clients, such as the National Security Agency. The company's opportunities in defense, citizen security and citizen services will increase as a result, said James Regan, DRC chairman and chief executive officer.

The Impact Innovations division will be integrated immediately into DRC. Ellen Glover, president of Impact Innovations government division, is now a DRC vice president and division manager, according to DRC officials.

Regan said Impact Innovations software development and change management capabilities complement DRC's business intelligence, business transformation and network engineering and operations capabilities.

Impact Innovations' government division employed about 365 people in the United States. About 30 percent of its revenues came from government intelligence agencies, 30 percent came from various Defense Department agencies, and about 33 percent came from federal civilian agencies such as the Justice Department, Veterans Affairs Department and U.S. Postal Service. About half of its employees hold security clearances, according to DRC.

Impact Innovation's Commercial Division will continue to serve Fortune 500 and middle-market customers in Dallas and Atlanta, according to the company.

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.