ITS jumps into the M&A game
- By Nick Wakeman
- Feb 24, 2005
ITS Corp. has bought Charis Corp. of San Bernardino, Calif., the first of what company officials said will be a "wave of acquisitions."
ITS of Oxnard, Calif., a small but rapidly growing California IT services company, has about $60 million in annual revenue. Charis has about $3 million in annual revenue. Terms of the deal were not disclosed.
Charis' biggest customer is the Defense Department. The 50-person company provides environmental impact studies under the National Environmental Policy Act, Resource Conservation and Recovery Act, Endangered Species Act and other regulatory requirements.
The goal for ITS is to couple acquisitions to its already strong growth, said Thomas Sundling, ITS chief executive officer. Through organic growth ITS has gone from about $10 million a year to $60 million in five years, he said. The company has about 850 employees currently.
ITS was acquired in late 2003 by the equity investment group Riordan Lewis & Haden. Sundling, a former executive with General Dynamics Corp., was brought in as CEO in April 2004.
ITS wants to do two to four acquisitions a year, Sundling said, and is targeting companies up to $30 million in annual revenue. As the company grows, the size of acquisitions also will grow, Sundling said. ITS wants to buy companies that will bolster its offerings in defense, homeland security and intelligence.
Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.