SI stockholders OK sale to Serco

Serco Group plc's planned acquisition of SI International Inc. took another step toward completion Nov. 12 when SI International's stockholders approved the merger.

Approval by SI International's stockholders was a condition to completing the proposed acquisition.

Serco announced on Aug. 27 that it had signed a definitive agreement to acquire SI International and that the transaction had been approved by both boards of directors.

The deal was a cash transaction worth $423 million.

Serco, the U.S. division of the British Serco Group, is also assuming about $87.3 million in SI's debt. The purchase price was a 40 percent premium over SI's Aug. 26 closing price of $22.89 per share.

Based on 2007 data, the combined companies have $1.3 billion in revenue and 11,500 employees. Virtually all the revenue comes from work with the federal government.

The SI deal is Serco's second major acquisition in three years. In 2005, the company acquired defense contractor Resource Consultants Inc.

The SI acquisition is expected to be completed before the end of the year, Serco officials said. The closing remains conditional upon regulatory approvals and customary closing conditions.

SI International, of Reston, Va., ranks No. 44 on Washington Technology's 2008 Top 100 list of the largest federal government prime contractors. Serco, of Vienna, Va., ranks No. 56.

About the Author

David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
contracts DB


  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Read More

  • Is SBA MIA on contractor fraud? Nick Wakeman

    Editor Nick Wakeman explores the puzzle of why SBA has been so silent on the latest contractor fraud scandal when it has been so quick to act in other cases. Read More