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ManTech to Acquire Gray Hawk Systems, Inc.; Will Purchase Outstanding Shares of Gray Hawk Systems, Inc. for $100M in Cash.


FAIRFAX, Va. -- ManTech International Corporation (Nasdaq:MANT):

--Expands ManTech's reach in the Homeland Security Noun 1. Homeland Security - the federal department that administers all matters relating to homeland security
Department of Homeland Security

executive department - a federal department in the executive branch of the government of the United States
 and Intelligence Community markets

--Positions ManTech to reach the $1 billion platform level

--Immediately accretive to EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format.  

ManTech International Corporation (Nasdaq:MANT), a leading provider of innovative technologies and solutions focused on mission-critical national security programs for the Intelligence Community and the Departments of Defense, State, Homeland Security, Justice and other federal government customers, today announced that it has signed a definitive agreement to acquire Gray Hawk Systems, Inc., a profitable, fast-growing, diversified, high technology company providing a broad range of intelligence related services to the homeland security, law enforcement, Intelligence Community and the Department of Defense markets.

In a separate press release, ManTech also announced today its first quarter, 2005 financial results.

Under the terms of the acquisition agreement, ManTech will acquire all of the outstanding shares of Gray Hawk Systems for $100 million in cash. Financing for the acquisition, which is expected to be immediately accretive to ManTech's EPS, will consist of available cash and borrowings under ManTech's senior credit facility. ManTech will also make a 338 (h) 10 election (enabling a tax deduction Tax deduction

An expense that a taxpayer is allowed to deduct from taxable income.


tax deduction

See deduction.
), and it expects a greater than $25 million benefit as a result of the deduction.

Headquartered in Alexandria, VA and founded in 1995, Gray Hawk Systems is a privately held company privately held company

A firm whose shares are held within a relatively small circle of owners and are not traded publicly.
 that had 2004 revenues of approximately $70 million and estimates 2005 revenues of approximately $90 million. More than 90 percent of the company's 500 employees are cleared, with 70 percent at higher level clearances.

The company's core competencies are in critical infrastructure protection Department of Defense (DOD) program to identify and protect assets critical to the Defense Transportation System. Loss of a critical asset would result in failure to support the mission of a combatant commander. , counter-intelligence/counter-terrorism mission support, information processing information processing: see data processing.
information processing

Acquisition, recording, organization, retrieval, display, and dissemination of information. Today the term usually refers to computer-based operations.
 and warfare systems engineering. About 75 percent of their customers are in homeland security related businesses and the remaining quarter in the Department of Defense and Intelligence Community.

"This acquisition is consistent with ManTech's growth strategy to broaden our footprint in the high-end intelligence, homeland security and defense markets," said George J. Pedersen, 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. , ManTech International Corporation. "Gray Hawk Systems is an outstanding company with a proven track record of strong growth, profitability, and excellence in customer service. The acquisition also positions us to reach the $1 billion revenue mark in the near future."

Harry M. Howton, CEO, Gray Hawk Systems, Inc. said, "Our unique capabilities involving intelligence processing, critical infrastructure protection, data mining solutions, software development and other related IT services are a great fit with ManTech's expertise. While we share much of the same customer base, there is very little overlap in the services we provide. Joining with ManTech will allow us to provide our customers with more robust and comprehensive solutions and offer expanded professional development opportunities for Gray Hawk Systems employees. Additionally, we are delighted to join ManTech because they share our devotion to delivering quality systems, solutions and services and our focus on building customer relations through responsive, thorough, complete, value-added performance."

Gray Hawk Systems has been widely recognized for its growth and IT capabilities. In March of this year, the company received the 2005 City of Alexandria, VA, Technology Award for its application of technology in providing systems engineering, risk assessment and data visualization See information visualization.  technical support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services  to the federal government. In October 2004, the Washington Business Journal ranked Gray Hawk Systems number 10 in its list of the top 50 Fastest Growing Companies in the Greater Washington area. Inc. Magazine has named Gray Hawk Systems one of America's 500 leading entrepreneurs in 2001 (#227), 2002 (#428), 2003 (#191) and 2004 (#184). Washington Technology named Gray Hawk Systems one of its 50 most outstanding small companies in federal IT contracting in 2001 (#43), 2002 (#20) and 2003 (#30). And the Virginia Chamber of Commerce rated Gray Hawk Systems one of Virginia's 50 fastest growing companies in 2002 (#10) and 2003 (#9).

Robert A. Coleman, President and COO, ManTech International Corporation said, "The Gray Hawk Systems acquisition solidifies our position as a leading player in the high-end Intelligence market. It greatly expands our presence in homeland security related missions and meshes very well with our high-end offerings in the Intelligence Community and Department of Defense. Gray Hawk Systems capabilities round-out ManTech's skills in the end-to-end, Intelligence information processing cycle The sequence of events in processing information, which includes (1) input, (2) processing, (3) storage and (4) output. The input stage can be further broken down into acquisition, data entry and validation. , and gives ManTech access to new markets in national defense agencies, which we believe will become increasingly important as the Intelligence Reform Act of 2004 continues to unfold."

The acquisition is subject to various closing conditions and approvals, including approval under the Hart-Scott-Rodino Act Hart-Scott-Rodino Act

Often used in risk arbitrage. Antitrust act administered by U.S. Department of Justice and the FTC that requires an investor to file a form with the government before he acquires an economic interest in the lesser amount of $15 million or 15% of the
, and is expected to be completed within a month.

Financial Outlook and Conference Call

ManTech will discuss the financial implication of the acquisition and the effects on estimates during its first quarter 2005 conference call scheduled for today at 5 p.m. EDT EDT
abbr.
Eastern Daylight Time


EDT Eastern Daylight Time

EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York

EDT 
. Interested parties may access the call by dialing (800) 819-9193 (domestic) or (913) 981-4911 (international). The conference call will be Webcast (listen only) simultaneously via the Internet at www.mantech.com. Interested parties should dial in or log on approximately ten minutes prior to the start of the call.

A replay of the call will be available beginning at 9 p.m. today and will remain available through midnight, May 4. To access the replay, call (888) 203-1112 (domestic) or (719) 457-0820 (international). The confirmation code for the replay is 9359641. A replay will also be available on ManTech's Website approximately two hours after the conclusion of the call.

About ManTech International Corporation:

Headquartered in Fairfax, Virginia Fairfax is an independent city forming an enclave within the confines of Fairfax County, in the Commonwealth of Virginia. Although politically independent of the surrounding county, the City of Fairfax is nevertheless its county seatGR6. , ManTech International Corporation is a leading provider of innovative technologies and solutions for mission-critical national security programs for the Intelligence Community and the Departments of Defense, State, Homeland Security, Justice and other U.S. federal government customers. ManTech's expertise includes systems engineering, systems integration, technology and software development, enterprise security architecture, information assurance, intelligence operations The variety of intelligence and counterintelligence tasks that are carried out by various intelligence organizations and activities within the intelligence process. Intelligence operations include planning and direction, collection, processing and exploitation, analysis and production,  support, network and critical infrastructure protection, information technology, communications integration and engineering support. The company supports the advanced telecommunications systems that are used in Operation Iraqi Freedom and in other parts of the world; provides the physical and cyber security to protect U.S. embassies all over the world; has developed a secure, collaborative communications system In telecommunication, a communications system is a collection of individual communications networks, transmission systems, relay stations, tributary stations, and data terminal equipment (DTE) usually capable of interconnection and interoperation to form an integrated whole.  for the U.S. Department of Homeland Security Noun 1. Department of Homeland Security - the federal department that administers all matters relating to homeland security
Homeland Security

executive department - a federal department in the executive branch of the government of the United States
; and is helping the Department of Justice's U.S. Marshals Service The U.S. Marshals Service, a division of the Justice Department, is the oldest federal law enforcement agency, having served as a link between the executive and judicial branches of the government since 1789. The president appoints U.S. marshals for terms of four years.  deploy a common, office automation system. With 2004 annual revenues of $842 million and approximately 5,500 highly qualified employees, the company operates in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area.  and 40 countries worldwide. In 2004, ManTech was selected by Business Week magazine as one of the Top 100 Hot Growth Companies and ranked by VARBusiness magazine as one of its Top 50 Fastest-Growing Solution Providers. Additional information on ManTech can be found at www.mantech.com.

Forward-Looking Information:

Statements and assumptions made in this press release, which do not address historical facts, constitute "forward-looking" statements that ManTech believes to be within the definition in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and  of 1995 and involve risks and uncertainties, many of which are outside of our control. Words such as "may," "will," "intends," "should," "expects," "plans," "projects," "anticipates," "believes," "estimates," "predicts," "potential," "continue," or "opportunity," or the negative of these terms or words of similar import are intended to identify forward-looking statements. Such forward-looking statements include, but are not limited to, the expectation that the transaction will close in May, the impact of the transaction on 2005 revenues and EPS, and the opportunity for substantial future tax benefits. Such statements are subject to numerous assumptions and uncertainties, many of which are outside ManTech's control. These include, but are not limited to, consummation of the transaction by May 31, 2005, governmental approval, and ManTech's ability to successfully integrate the operations of Gray Hawk Systems, Inc.

These forward-looking statements are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from those anticipated, including, without limitation: adverse changes in U.S. government spending Government spending or government expenditure consists of government purchases, which can be financed by seigniorage, taxes, or government borrowing. It is considered to be one of the major components of gross domestic product.  priorities; failure to retain existing U.S. government contracts or win new contracts; failure to obtain option awards, task orders, or funding under contracts; risks of contract performance; uncertainties specifically related to discontinued operations Discontinued operations

Divisions of a business that have been sold or written off and that no longer are maintained by the business.
; adverse results of U.S. government audits of our U.S. government contracts; risks associated with complex U.S. government procurement laws and regulations; failure to experience favorable results from acquisition synergies; risks of contract termination, either for default or for the convenience of the U.S. government; and material changes in laws or regulations applicable to the company's businesses. These and other risk factors are more fully discussed in the section entitled "Risks Related to the Company's Business" in ManTech's Annual Report on Form 10-K Form 10-K

A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information.


Form 10-K

See 10-K.
 filed with the Securities and Exchange Commission on March 16, 2005, and, from time to time, in ManTech's other filings with the Securities and Exchange Commission, including among others, its reports on Form 8-K Form 8-K

The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock.


Form 8-K

See 8-K.
 and Form 10-Q Form 10-Q

See 10-Q.
.

The forward-looking statements included in this news release are only made as of the date of this news release and ManTech undertakes no obligation to publicly update any of the forward-looking statements made herein, whether as a result of new information, subsequent events or circumstances, changes in expectations or otherwise.
COPYRIGHT 2005 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2005, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Geographic Code:1USA
Date:May 4, 2005
Words:1510
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