DYNCORP ACQUIRES TECHNOLOGY APPLICATIONS, INC.
RESTON, Va., Nov. 18 /PRNewswire/ -- DynCorp announced that it has acquired Technology Applications, Inc. (TAI), a high technology systems integration, telecommunications and environmental services firm, headquartered in Alexandria, Va. TAI's fiscal 1993 revenues were approximately $40 million. The acquisition adds 400 employees to DynCorp's expanding capabilities in the high-tech services market. Founded in 1977, TAI provides tactical and non-tactical software engineering and logistics services to industry as well as defense and civilian government agencies. For instance, TAI upgraded the National Cancer Institute's supercomputer center allowing researchers to model the effects of anti-cancer drugs at the molecular level; used image technology to restore and preserve thousands of NASA's historically significant electrical and mechanical engineering drawings; and developed chemical analysis models for the EPA to identify and measure pollutants in water, soil, sediment and tissue. TAI is also one of only 10 U.S. companies licensed to perform software process assessments for a federally funded project research and development center operated by Carnegie Mellon University. According to DynCorp's Government Services Group President Paul Lombardi, TAI's ability to harness advanced technology to meet the specific requirements of its customers is one of the things that most attracted DynCorp. "Because DynCorp is a services firm, we are not in the business of developing technology to expand the state of the art. We are interested in how technology can be used to satisfy our customers' needs. TAI has a tremendous track record in tapping the power of emerging technologies to address the complex needs of a diverse customer base. This is just the kind of expertise that has made DynCorp successful in the past and will continue to do so in the future," said Lombardi. TAI founder and CEO James I. Chatman noted that the sale represents a win-win situation for TAI and DynCorp. "It has become increasingly difficult for small and mid-sized companies to compete in the unlimited competition arena against larger companies in the high technology industry. DynCorp has the resources to devote to a much more aggressive marketing and business development program for TAI. I am confident that this is the right move for TAI and its employees at this stage in our history," said Chatman. TAI is the ninth acquisition for DynCorp since going private in 1988. According to DynCorp CEO Dan R. Bannister one of the major reasons for DynCorp's success in the face of defense cuts and a sluggish economy has been its ability to diversify its business mix. In 1988 defense contracts accounted for 73 percent of the company's revenues. Today that percentage is close to 50 percent and is expected to drop even further in 1994. "Acquiring companies and successfully integrating them has been a major component of our diversification strategy," said Bannister, adding that the company will likely pursue other acquisitions in 1994. Headquartered in Reston, DynCorp is one of the nation's largest U.S. defense contractors. With 22,000 employees and annual revenues of $1 billion, DynCorp is also one of the largest employee-owned companies in the country. DynCorp provides professional and technical services to U.S. and foreign government agencies and commercial clients worldwide. -0- 11/18/93 /CONTACT: Janine Carey of DynCorp, 703-264-0330/
CO: DynCorp; Technology Applications, Inc. ST: Virginia IN: CPR ARO SU: TNM
DT-DC -- DC026 -- 6066 11/18/93 13:09 EST
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|Date:||Nov 18, 1993|
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