BTG completes CAI acquisition.BTGI) announced that it has completed the acquisition of Concept Automation Inc. (CAI), a systems integrator and value-added reseller in Sterling, Va. BTG said the purchase price for 100% of the shares in CAI is $13.5 million -- $13 million in cash and $500,000 in BTG stock. An additional $1.25 million in bonuses will be paid to CAI employees who remain with the company. In its last fiscal year, which ended March 31, 1995, BTG reported revenue of $156.0 million. CAI estimates revenue of $84 million for its current fiscal year, which ends Dec. 31, 1995. With the addition of CAI's 200 employees, the combined BTG organization has 850 people working in offices in nine states and in Europe. Former CAI 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. , Robert F. Roberts, said he is leaving the company he founded in 1975 and is looking forward to pursuing other interests. BTG President and CEO Edward H. Bersoff Edward H. Bersoff is the President, CEO and founder of BTG, Inc. Prior to founding BTG in 1982, Bersoff was President of CTEC, Inc. Previously, as an officer in the U.S. Army, he was assigned to the NASA Electronics Research Center in Cambridge, Massachusetts. annouced that Leland R. Phipps will remain as president of CAI, which is now 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 BTG. Bersoff said the two companies fit together very well. "Both have these same primary lines of business: systems integration and value-added reselling. The corporate cultures are also similar so our people will be able to work together well, team on joint projects and offer a new range of combined services. Both CAI and BTG have many well-established, long-term relationships with our customers." In addition, Bersoff said CAI brings additional market share and a broad base of contracts with civilian government agencies. CAI's recent awards include a Treasury Department contract with an estimated value of $109 million and an 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 award that has a potential value of over $50 million. CAI's clients will further diversify BTG's customer base," Bersoff said. "BTG's customers are primarily defense and intelligence agencies of the U.S. government. CAI's clients include civilian agencies of the government such as the Departments of Justice and Education, NASA NASA: see National Aeronautics and Space Administration. NASA in full National Aeronautics and Space Administration Independent U.S. , Federal Aviation Administration Federal Aviation Administration (FAA), component of the U.S. Department of Transportation that sets standards for the air-worthiness of all civilian aircraft, inspects and licenses them, and regulates civilian and military air traffic through its air traffic control , and the Tennessee Valley Authority Tennessee Valley Authority (TVA), independent U.S. government corporate agency, created in 1933 by act of Congress; it is responsible for the integrated development of the Tennessee River basin. ." Both CAI and BTG are expanding into state and local government work as well as the commercial sector. CAI has contracts with Freddie Mac, Kaiser Permanente, the Baltimore County Public Schools Baltimore County Public Schools is the school district in charge of all public schools in Baltimore County, Maryland, United States. The school system is managed by the Board of Education, headquartered in Towson. The Superintendent is Dr. Joe Hairston. , Shaw Industries, and other commercial clients. BTG clients include the World Bank, Strong Mutual Funds, and the Okaloosa County school district in Florida. BTG is an information technology company providing complete solutions to a broad spectrum of systems and product needs of Government and other customers, combining systems development, integration and engineering with value-added reselling of hardware, software and integrated systems. CONTACT: BTG Inc., Vienna John Graham, 703/761-6675 (Investors contact) or Theda Parrish, 703/761-6581 (Editors contact) |
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