GTEC buys classified IT provider for $26.8 million

Zytel purchase boosts range of services for national security customers

Global Defense Technology and Systems Inc. has entered into a definitive agreement to acquire Zytel Corp. for $26.8 million in cash.

Zytel provides cybersecurity and mission systems support for the critical intelligence, counterterrorism and cyber warfare missions of its national security clients, according to a GTEC statement dated Sept. 13.

The company, which is based in the Fort Meade, Md., area, also excels in the design, development and deployment of next-generation, net-centric mission solutions that collect and protect vital information, leveraging its core competencies in systems engineering and architecture, software development and intelligence analysis, according to the statement.

Zytel’s work is classified and all of its employees are cleared at the Top Secret/Sensitive Compartmented Information level.

The company expects to generate approximately $20 million in revenue in 2010 with continued rapid growth in 2011, GTEC said.

“By combining our core and complementary capabilities, both GTEC and Zytel can bolster the range of systems, solutions and differentiated technologies we can provide to national security customers in support of their critical frontline missions,” said John Hillen, GTEC’s President and CEO, in the statement.

The transaction, which is subject to customary closing conditions, is expected to close in the fourth quarter of 2010.

GTEC’s revenue from products and services slipped in the second quarter of 2010 to $49.2 million, compared to $53.4 million in 2009, according to the company’s financial report dated Aug. 5.

For the first half of the year, GTEC recorded $95.1 million in revenue, which is $7.9 million below 2009’s total.

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.

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