Alphatech sold for $88.4 million
BAE Systems North America has entered into an agreement to acquire Alphatech, which develops advanced information technologies for solving national security and intelligence problems, for $88.4 million.
According to a statement, the integration of Alphatech's technologies with BAE Systems' enterprise engineering and systems integration expertise will result in expanded capabilities to address the network centric warfare requirements of the national security and intelligence communities, particularly in the areas of Precision Engagement and Tasking, Processing, Exploitation & Dissemination (TPED).
Headquartered in Burlington, Massachusetts, and employing 322 people, Alphatech specialises in image and signal processing, multi-intelligence fusion and intelligent systems for the US Department of Defense and other government intelligence agencies.
For the year ending December 2003, Alphatech recorded sales of $51 million. Revenues for the six months ending June 2004 were $32 million.
"The acquisition of Alphatech will augment BAE Systems' capabilities in enterprise engineering, software development, and advanced geospatial technologies, supporting our mission to develop intelligence and information dominance systems, and provide our customers with superior solutions," said Mark Ronald, president and CEO of BAE Systems North America.
Conclusion of the transaction is expected during the fourth quarter, subject to regulatory reviews and approvals and customary closing conditions.
Separately, BAE Systems North America, recently entered into a definitive merger agreement to acquire DigitalNet Holdings for $600 million, including the assumption of $93.25 million of debt.
Headquartered in Herndon, Virginia, DigitalNet, which employs nearly 2,200 people primarily in the United States, is a provider of networked infrastructure and information assurance solutions to federal government agencies such as the Departments of Defense, Homeland Security, Justice, Treasury and State, as well as the USA's intelligence community. The company provides strategic consulting services, application development and integration, e-Government applications and strategies.
According to a statement, the acquisition of DigitalNet will lead to BAE Systems North America becoming a leading federal sector information technology provider, with revenues in that market exceeding $1.2 billion.