EDO fortifies defense chops with acquisitions
- By Roseanne Gerin
- Jul 28, 2006
EDO Corp. has acquired an engineering services company and a signal intelligence systems firm to boost its Defense Department business.
In one deal, EDO signed a definitive agreement to acquire CAS Inc. for $170.7 million in cash and restricted EDO common shares worth $4.9 million.
CAS of Huntsville, Ala., is a privately held company that offers engineering services, logistics support and weapons-systems analysis to the Defense Department. Its services include system engineering and analysis support for theater missile defense, air defense, aviation and land-combat missile systems.
CAS has about 1,000 workers in 13 states and on military bases worldwide. The company had revenue of $184.3 million for the 12 months ended march 31. It will become part of EDO's engineered systems and services reporting segment. Investment bank BB&T Capital Markets/Windsor Group of Reston, Va., advised CAS on the deal.
In another deal, EDO also acquired Impact Science & Technology Inc. for $124 million, consisting of $106 million in cash and an $18 million promissory note to be paid over three years.
IST of Nashua, N.H., is a privately held company that delivers signals intelligence systems and analysis support to the intelligence community and advanced countermeasures and electronic attack systems to the Defense Department and other government agencies.
IST has about 200 workers and also has offices in Maryland and Colorado. The company had revenue of $63 million for the 12 months ended March 31. It will become part of EDO's electronic systems and communications reporting segment.
EDO expects to complete both transactions by September.
EDO also issued its second quarter 2006 financial results yesterday. The company posted revenue of $152.4 million in the second quarter, a 2.4 percent decrease from the $156.1 million it recorded during the same period last year. EDO also had net earnings of $6.3 million during the second quarter of this year, up three percent from $6.1 million during the second quarter of 2005.
EDO of New York has about 3,000 employees and had annual revenue of $648 million in fiscal 2005. The company ranks No. 45
on Washington Technology's 2006 Top 100
list of the largest federal IT contractors.