ManTech International Corp (MANT.O) said it agreed to buy privately held Sensor Technologies Inc for $242 million in cash to expand its presence in the high-end defense and intelligence market.
Sensor Technologies, a Red Bank, New Jersey-based provider of IT services to the U.S. Army, is expected to generate about $340 million in revenue in 2009 and $450 million in 2010, ManTech said.
With the defense appropriation bill on track and a clear mission and strategy for Afghanistan, this acquisition allows us to provide more direct support to the U.S. Army as it continues its overseas operations, George Pedersen, ManTech's chief executive, said in a statement.
Fairfax, Virginia-based ManTech, a provider of information technology services to federal customers for national security programs, expects the deal to add to its earnings in 2010.
The company said it will fund the acquisition from cash on hand and borrowings under its senior revolving credit facility.
ManTech has completed 14 acquisitions valued at over $547.6 million since it went public in February 2002, according to Reuters data.
When completed, the acquisition of Sensor Technologies would be its biggest so far.
Separately, in a regulatory filing, ManTech said it amended its credit facility with a syndicate of lenders, including Bank of America.
According to the amended terms, ManTech can incur additional unsecured debt and can increase capacity to repurchase its capital stock.
It also obtained additional commitments of about $30 million from its lenders.
ManTech shares were up more than 4 percent at $47.74 in morning trade Monday on Nasdaq. They have gained more than 39 percent until Friday since touching a year-low in May.
(Reporting by A.Ananthalakshmi in Bangalore; Editing by Maju Samuel and Gopakumar Warrier)