Support services and shipbuilding company VT Group has strengthened its US business with the acquisition of MILCOM Systems Corporation (MILCOM) for $42.5m.
Support services and shipbuilding company VT Group (VT) has strengthened its US business with the acquisition of MILCOM Systems Corporation (MILCOM) for a debt free cash consideration of $42.5m.
According to VT, MILCOM is expected to generate revenues in excess of $100m and a profit margin of approximately 5% for the full 2007 calendar year.
Based in Virginia Beach, Virginia and with offices throughout the United States, MILCOM designs, plans, installs and supports electronics and communications systems, primarily for the US government.
The majority of work is for the US Department of Defense, including installing and servicing Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) systems across a range of US Navy ships and submarines. MILCOM is also an established supplier to the homeland security and military air traffic control markets.
In April 2006 MILCOM was awarded a C4ISR performance based contract with the Space and Naval Warfare (SPAWAR) Center in Charleston. The contract, initially for one year, has four one-year extension options which would bring the estimated value of the contract to $577m.
VT Chief Executive Paul Lester commented: ‘MILCOM will considerably strengthen the quality of our technical services in the US market and will contribute significantly towards our strategic objective of growing a sizeable business in the USA.’
MILCOM employs more than 800 people and joins VT Group’s US
segment VT Services.