Titan acquire BTG for $141.9 million

The Titan Corporation has announced that it has entered into a definitive agreement to acquire BTG, Inc for approximately $114.9 million in Titan common stock and $27.0 million in cash.

The Titan Corporation has announced that it has entered into a definitive agreement to acquire BTG, Inc a provider of information technology solutions and services primarily to the US military and other government agencies for approximately $114.9 million in Titan common stock and $27.0 million in cash.

The purchase price includes the assumption of approximately $32 million in debt.

The transaction is expected to close by the end of 2001, subject to the satisfaction of customary closing conditions, the approval of BTG’s shareholders and the approval of Titan’s lenders, and will be accretive to Titan’s earnings in 2002.

Under the terms of the agreement, a newly formed subsidiary of Titan will be merged with and into BTG, with BTG surviving the merger as a wholly owned subsidiary of Titan.

According to Titan, BTG’s areas of expertise include information collection and analysis, warfare modelling and simulation, software and systems integration, network design and architecture, and information and network security.

Following the completion of the transaction, BTG’s employees, which number around 2000, will become part of Titan Systems, Titan’s government information technology subsidiary.

‘With the acquisition of BTG, Titan Systems should approach nearly $1.3 billion in revenues next year, with approximately $1 billion of that revenue generated by contracts for government information technology services and the remainder comprised of government product sales and government funded research and development projects,’ commented Gene W. Ray, Chairman, President and CEO of Titan.