GTSI revenue loss report no obstacle to small-biz acquisition
Company buys InSysCo to gain access to TIPPS4 contract
- By David Hubler
- Aug 16, 2011
GTSI Corp. has completed its acquisition of Information Systems Consulting Group Inc., a private federal IT professional services provider. Financial terms of the deal were not reported in the announcement dated Aug. 16.
InSysCo and its more than 110 employees provide software development and support services to the federal civilian marketplace.
The acquisition expands GTSI’s professional services capabilities in software and database development and maintenance, the announcement states.
It also gives GTSI access to InSysCo’s recently awarded spot on the Treasury Department’s $4 billion Total Information Processing Support Services 4 (TIPSS-4) prime contract. Its largest customer is the IRS, according to the announcement.
News of the acquisition comes on the heels on GTSI’s second-quarter and second-half 2011 earnings announcement, which showed revenue declines of nearly 40 percent for both periods compared to the corresponding periods of 2010.
“The acquisition of InSysCo represents a significant step in executing our strategy of growing the professional services component of our business,” Sterling Phillips, GTSI president and CEO, said in the announcement.
InSysCo, of Fredericksburg, Va., brings a new dimension of technical capability to GTSI’s ability to deliver comprehensive IT solutions to its customers, Phillips added.
The McLean Group acted as M&A advisers to InSysCo.
GTSI, of Herndon, Va., ranks No. 68 on Washington Technology’s 2011 Top 100 list of the largest federal government contractors.
David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.