SI International Agrees To Merger
SI International, a Reston information technology provider to the government and defense department, has reached an agreement to merge with the Northern American unit of a U.K firm known as Serco Group plc.
SI International, with 4,200 employees worldwide, 80 percent of whom have security clearances, agreed to be bought for about $423 million or $32 per share, a 40 percent premium over SI's closing stock price Tuesday. Serco will also assume SI's debt of $87.3 million.
Serco's North American unit is also based in Reston. The firm said the proposed acquisition, which must be reviewed by regulators, would be its second major one in three years and "propel the combined company to the tier of $1 billion-plus federal contractors in the U.S."
"Based upon 2007 reported financial results, the combined companies would have total revenues of approximately $1.3 billion and 11,500 employees serving government clients," Serco said in a statement.
The deal is expected to close by the end of the year.
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