Investment group lassoes Intergraph

Another private equity group is snapping up a government contractor in a bid to boost the company's growth.

Intergraph Corp. of Huntsville, Ala., has agreed to be acquired for $1.3 billion by an investor group led by Hellman & Friedman LLC and the Texas Pacific Group. Intergraph shareholders will be paid $44 a share in cash, which is a premium of about 22 percent, the company said.

Intergraph, No. 85 on Washington Technology's 2006 Top 100 list of the largest government contractors, provides spatial information management software. Major customers include the Army, Air Force and Navy as well as several foreign governments.

Government revenue accounted for $408.8 million of Intergraph's $576.8 million in 2005 revenue.

The acquisition by Hellman & Friedman and Texas Pacific will give Intergraph the resources to accelerate its growth, said R. Halsey Wise, Intergraph president and CEO.

"Intergraph remains deeply committed to the markets we serve, and we now expect to have even greater flexibility to invest in our customers, technology, people and future," he said in a release.

The company's shareholders still need to vote on the acquisition, which has already been approved by Intergraph's board.

Goldman Sachs & Co. acted as Intergraph's financial advisor, and Morgan Stanley worked with Hellman & Friedman and Texas Pacific. Bass, Berry & Sims PLC served as legal advisor for Intergraph, and Simpson Thacher & Bartlett LLP is legal advisor to the investor group.

About the Author

Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.

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