DRC Completes Acquisition High Performance Technologies, Inc.
05 Julho 2011 - 5:02PM
Dynamics Research Corporation (Nasdaq:DRCO), a leading provider of
innovative management consulting, engineering, and technology
solutions, today announced that it has completed the acquisition of
High Performance Technologies, Inc (HPTi), a leading provider of
high-end technology services, primarily to the federal healthcare
and military technology markets.
HPTi's outstanding reputation and track-record of providing
differentiated highly technical services in response to its
customers' most critical challenges is the product of the company's
talented, highly educated, cleared and technically advanced
professional staff. With nearly 80 percent of revenue derived from
the healthcare, intelligence, homeland security, federal
civilian/financial, and intelligence markets the company is on a
strong growth trajectory.
"We are extremely pleased to have closed this acquisition," said
Jim Regan, DRC's chairman and chief executive officer. "HPTi has an
outstanding management team, and our company cultures are well
aligned. We are very well positioned in markets with increasing
demand for our solutions and, with HPTi, our IT and technical
solutions have added depth. Furthermore, the acquisition
provides significant value enhancement opportunity for DRC
shareholders."
Terms of the merger agreement included a cash price of $143
million. For tax purposes, the transaction is treated as an
asset purchase resulting in tax benefits to DRC, estimated at $23
million. HPTi earnings before interest, taxes, stock
compensation, depreciation and amortization (EBITDA) for the twelve
months ended March 31, 2011 was $11.9 million on revenue of $97
million.
Concurrent with the transaction, DRC established a new credit
facility with a $110 million five-year term loan, a $20 million
revolving credit facility and $40 million of subordinated debt with
a six-year term. The senior credit facility is led by Bank of
America and includes SunTrust Bank and PNC Bank as Lead
Arrangers. The subordinated debt financing was provided by
Ares Mezzanine Partners, L.P.
About Dynamics Research Corporation
Dynamics Research Corporation (DRC) provides measurable
performance improvements for government customers through the
delivery of innovative management, engineering and technology
solutions. DRC offers the capabilities of a large company and
the responsiveness of a small company, backed by a history of
excellence and customer satisfaction. Founded in 1955, DRC is
a publicly held corporation (Nasdaq:DRCO) and maintains more than
25 offices nationwide with major offices in Andover, Massachusetts
and the Washington, D.C. region. For more information please
visit our website at www.drc.com.
Safe harbor statements under the Private Securities Litigation
Reform Act of 1995: Some statements contained or implied in this
news release, may be considered forward-looking statements, which
by their nature are uncertain. Consequently, actual results could
materially differ. For more detailed information concerning how
risks and uncertainties could affect the company's financial
results, please refer to DRC's most recent filings with the SEC.
The company assumes no obligation to update any
forward-looking information.
CONTACT: Investors:
Chris Witty
Darrow Associates, Inc.
646.438.9385
cwitty@darrowir.com
Media:
Duyen "Jen" Truong
Sage Communications
703.584.5645
duyent@aboutsage.com
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