BAE Systems closes deal for DigitalNet
- By Nick Wakeman
- Oct 25, 2004
BAE Systems North America Inc. of Rockville, Md., today completed its $693.25 million deal to acquire Herndon, Va.-based DigitalNet Holdings Inc.
With the acquisition, which includes $600 million in cash and the assumption of $93.25 million in debt, BAE picks up capabilities in network services and information assurance solutions.
DigitalNet's customers include the State, Justice, Treasury, Homeland Security and Defense departments.
With the acquisition, BAE is creating a new business unit called BAE Systems Information Technology, which will focus on national security customers.
"Our intelligence and national security customers continue to ask for larger-scale systems that facilitate information-sharing," said Mark Ronald, president and chief executive officer of BAE Systems North America. "Creating this new business will permit the company to pursue many of these efforts to meet critical federal IT requirements."
BAE Systems North America is a wholly owned subsidiary of BAE Systems plc of Hampshire, United Kingdom. The company was ranked No. 12 on Washington Technology's Top 100 list of federal prime IT contractors. DigitalNet was ranked No. 34.
DigitalNet has nearly 2,200 employees and had $336.2 million in 2003 revenue. For the first six months of 2004, the company pulled in $178 million, according to BAE.
BAE's new IT unit will have over 4,000 employees. Bill Shernit, currently president of BAE Enterprise Systems, will lead the unit.
The deal for DigitalNet was announced Sept. 11.
Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.