Eyak renews merger bid for GTSI
Alaska native company offers $7 a share
- By David Hubler
- Sep 13, 2010
Eyak Technology LLC has made a new merger proposal to acquire all outstanding capital stock of GTSI Inc. for $7.00 a share in cash, the Alaska Native-owned small business announced today.
The proposal represents a premium of 35.1 percent over GTSI’s closing market price on Sept. 10, of $5.18 and a premium of 34.6 percent over the average closing price for the preceding 30 trading days, the Eyak statement said.
EyakTek is a provider of infrastructure and security systems, communications, information technology, and health care services.
The proposal, which initially was made on Aug. 13 and rejected by GTSI on Aug.30, was reiterated in a letter sent by EyakTek Monday, Sept. 13, to GTSI’s board of directors “after several unsuccessful attempts to engage GTSI in substantive negotiations,” it said.
Following the acquisition, EyakTek said it intends to operate GTSI on a standalone basis, in order to preserve and capitalize on its strong brand name and industry recognition.
EyakTek said it anticipates financing the transaction with a combination of cash on hand and additional senior debt financing, for which it has a commitment, subject to customary conditions.
Houlihan Lokey is acting as financial adviser to EyakTek and Morrison & Foerster LLP is acting as legal adviser.
Eyak Technology, of Anchorage, ranks No. 65 on Washington Technology’s 2010 Top 100 list of the largest federal government contractors. GTSI, of Herndon, Va., ranks No. 59.
David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.