AverStar, Inc. to Acquire CBSI; AverStar Continues Path as Fast Growing IT Services Firm.BURLINGTON, Mass.--(BUSINESS WIRE)--Feb. 11, 1999--AverStar, Inc. today announced that it has signed an agreement to acquire the outstanding shares of Computer Based Systems, Inc. (CBSI CBSI CUNA Brokerage Services, Inc. CBSI Cambodian Buddhist Society, Inc. (Silver Springs, Maryland) CBSI Certified Bridge Safety Inspector CBSI Custom Business Solutions, Inc. ), Fairfax, Va. The deal is a strategic part of AverStar's aggressive plan for growth over the next few years. CBSI will become a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of AverStar, a leader in software assurance, software development and Year 2000 validation services for mission critical systems. The transaction is expected to close at the end of February. Terms of the transaction were not disclosed. Founded in 1978, 600-employee CBSI provides data center management, network operations support and enterprise application development to federal government customers. Its largest customers are the U.S. Patent and Trademark Office, the Environmental Protection Agency Environmental Protection Agency (EPA), independent agency of the U.S. government, with headquarters in Washington, D.C. It was established in 1970 to reduce and control air and water pollution, noise pollution, and radiation and to ensure the safe handling and , the Department of Housing and Urban Development and the Department of Labor. CBSI completed 1998 with over $40 million in revenue, a 36% increase from the year ended Dec. 31, 1997. CBSI will operate as a separate subsidiary of AverStar. Richard W. Zins, who had been Vice President of CBSI's Services Group, will become President of CBSI and a Senior Vice President of AverStar. He will succeed Mohan Kapani, founder of CBSI, as President. Roy Kapani will become a Vice President of AverStar, working on both business development and corporate development fronts. "CBSI becomes one of the pillars of our growth strategy," stated AverStar's Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , Michael B. Alexander. "This transaction, along with our rapid internal growth, keeps AverStar on track as one of the fastest growing IT services companies serving government and commercial customers." According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Alexander, CBSI fits well with the AverStar strategy to acquire fast growing IT services companies. "CBSI brings new customers to the AverStar client base and rounds out the AverStar systems life cycle offerings with its network management and data center contracts. "CBSI's growth rate and excellent reputation reinforces AverStar's market position as a key consolidator in the federal IT space and a trusted leader in software and systems assurance, development and operations for mission critical systems," Alexander added. Mohan Kapani, CBSI's President and founder, said "Joining forces with AverStar is a positive step in the evolution of CBSI and will provide countless opportunities for our employees. In AverStar, we are partnering with a company that shares our entrepreneurial mindset mind·set or mind-set n. 1. A fixed mental attitude or disposition that predetermines a person's responses to and interpretations of situations. 2. An inclination or a habit. , our commitment to advanced technology and our focus on the highest level of satisfaction for our customers." AverStar's key customers are the U.S. Postal Service The U.S. Postal Service (USPS) processes and delivers mail to individuals and businesses within the United States. The service seeks to improve its performance through the development of efficient mail-handling systems and operates its own planning and engineering programs. , NASA NASA: see National Aeronautics and Space Administration. NASA in full National Aeronautics and Space Administration Independent U.S. , U.S. Navy, the Health Care Financing Administration Health Care Financing Administration, n.pr department in the U.S. agency of Health and Human Services responsible for the oversight of the Medicaid and Medicare benefit programs, including guidelines, payment, and coverage policies. , the Immigration and Naturalization Service Noun 1. Immigration and Naturalization Service - an agency in the Department of Justice that enforces laws and regulations for the admission of foreign-born persons to the United States INS , the Bureau of Land Management and several financial service companies. About AverStar, Inc. AverStar creates and validates exceptional software and solutions for the critical systems of government and commercial customers. The 1300-employee company delivers high-quality, reliable products and services for civil government, aerospace, defense and corporate customers. AverStar headquarters are located at 23 Fourth Avenue, Burlington, MA 01803, with 30 offices throughout the United States. Please visit AverStar's Website at www.averstar.com. About CBSI, Inc. CBSI is a premier provider of information technology services to federal, state and commercial clients. Its specialties include the development of client-server and Internet/Intranet systems, facilities and enterprise network management and software engineering. Headquartered at 2750 Prosperity Avenue, Fairfax, VA 22031, the company also maintains offices in Atlanta, Dallas and Kansas City. You can visit its web site at www.cbsi.com. |
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