Integral Systems Announces Acquisition of CVG-Avtec
March 5, 2010
Integral Systems, Inc., has acquired privately held CVG, Incorporated and its subsidiary, Avtec Systems, Inc. (together, "CVG-Avtec"). The acquisition further expands the reach of Integral Systems' award winning product line and customer base within the Department of Defense (DoD). CVG-Avtec, based in Chantilly, VA, has approximately 100 employees and will be integrated into Integral Systems' Products Group as Integral Systems SATCOM Solutions.
Integral Systems will pay an aggregate of $34,675,000 in an all cash transaction or approximately one times the trailing twelve months revenue of CVG-Avtec. Additional terms of the transaction are summarized in the current report on Form 8-K filed today by Integral Systems with the Securities and Exchange Commission. Concurrent with this acquisition, Integral Systems will obtain a new $55 million secured credit facility with three syndicate banks led by Bank of America, N.A. The acquisition will be financed with a combination of the Company's existing cash available and borrowings under the new line of credit.
CVG-Avtec provides secure, satellite-based communication solutions to government and commercial markets. The company offers integrated ground systems infrastructure solutions for satellite communications, payload data processing, simulation and testing for military, intelligence, government, and commercial programs worldwide.
"CVG-Avtec's world-class products and services are immediately synergistic with our business model," said Paul Casner, President and CEO of Integral Systems. "With this acquisition we increase our footprint in the satellite communications (SATCOM) and unmanned aerial vehicle (UAV) markets and augment our customer offerings for satellite ground control and processing. In addition, CVG-Avtec's talented employees — many of whom have high-level security clearances — broaden our in-house system engineering and product development capabilities."
"CVG-Avtec has an outstanding reputation for delivering cutting-edge solutions in support of its customers," said Stuart Daughtridge, Executive Vice President of Integral Systems' Products Group. "As Integral Systems SATCOM Solutions, CVG-Avtec will continue to provide the technical and subject area expertise to customers that they have come to expect. In addition, these customers will benefit from having access to the full range of solutions offered by the existing Integral Systems family of companies."
