SI International buys Zen Technology
- By Roseanne Gerin
- Feb 09, 2006
SI International Inc. will acquire Zen Technology Inc., a network services provider, for $60 million in cash.
To close the deal, SI International expects to use available cash and borrow from its senior credit facility. The companies expect to complete the deal in the first quarter of this year.
The acquisition will broaden SI International's customer base by strengthening its relationship with several key Defense Department and civilian agency clients, and enhance its portfolio of mission-critical solutions, the company said in a statement.
Zen specializes in managed network services, information assurance, software development, systems engineering, database and systems administration and IT consulting services.
The privately held Bethesda, Md., company has about 275 employees, about 50 percent of whom have secret or above clearances. Its largest clients are the Missile Defense Agency, the Defense Department's Washington Headquarters Service, Federal Communications Commission, Pension Benefit Guaranty Corp. and the Federal Trade Commission.
For the 12 months that ended Nov. 30, Zen had revenue of about $38 million and operating profit of about $6 million. About 60 percent of its revenue came from Defense Department contracts, while the rest came from civilian agency contracts. The company generated 80 percent of its fiscal 2005 revenue as a prime contractor.
SI International of Reston, Va., has more than 4,000 people and had annual revenue of $262.3 million in fiscal 2004. The company ranks No. 49
on Washington Technology's 2005 Top 100
list of federal prime contractors.