Perot Systems buys QSS Group for $250M

Perot Systems Corp. will acquire QSS Group Inc., a federal government IT services company, for $250 million in an all-cash transaction. The deal is expected to close in January.

The acquisition will enable Perot Systems to grow within the federal government services sector, gain several governmentwide acquisition contracts and strengthen its IT capabilities, including information assurance and applications development and management. It also expands both the scope of services and the areas Perot Systems serves within the Homeland Security Department and the Defense Department.

QSS Group's clients include the Army, Coast Guard, NASA, National Oceanic and Atmospheric Administration, departments of Health and Human Services and Treasury and the intelligence community. The company currently operates as the prime contractor on more than 90 percent of its contracts.

Among the governmentwide acquisition contracts held by QSS Group are the Homeland Security Department's Enterprise Acquisition Gateway for Leading-Edge Solutions, the Army's Information Technology Enterprise Solutions, the Treasury Department's Total Information Processing Support Services and the General Service Administration's Millenia Lite.

Perot Systems expects QSS Group to achieve revenue of between $260 million and $280 million for 2007.

Following the acquisition, Perot Systems Government Services will have more than 3,400 associates serving the federal government and expects to report 2007 revenue of about $600 million.

Perot Systems of Plano, Texas, has more than 18,000 employees and had annual revenue of $2 billion in 2005. The company ranks No. 44 on Washington Technology's 2006 Top 100 list of the largest federal IT contractors.

About the Author

Doug Beizer is a staff writer for Washington Technology.

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