The news comes as GTSI is still struggling to recover from a decision by the Small Business Administration to temporarily suspend it from contracts. In 2011, the company — which resells computer hardware and software and provides related services — said its sales dropped nearly 47 percent from the previous year.
GTSI was suspended in 2010 after the SBA alleged it took part in a scheme that “resulted in contracts set aside for small businesses being awarded to ineligible contractors.” The suspension followed a Washington Post investigation that uncovered relationships between GTSI and three small businesses, but was lifted when GTSI agreed to remove its chief executive and general counsel and turn over internal business documents.
In the announcement today, GTSI said the agreement was unanimously approved by a special committee of independent GTSI directors and the company’s full board of directors.
Under the deal, GTSI will become a private company. The company said it is postponing its 2012 annual stockholders’ meeting indefinitely.