SI International Inc., a Reston company that provides technology services to federal agencies, agreed to acquire Shenandoah Electronic Intelligence Inc., a Harrisonburg, Va., government contractor, for $75 million in cash.
The acquisition will give SI a bigger foothold at the Department of Homeland Security, which is SEI's biggest customer. SEI said 99 percent of its 1,600 employees have security clearances, a credential in great demand among contractors.
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The acquisition, expected to close within two months, will be SI's seventh purchase since it was founded in 1998. Last month, it completed the acquisition of Columbia-based Bridge Technology Corp. for $30 million.
SI said privately held SEI had $73.9 million in revenue and a $9.5 million operating profit during the 12 months ended Sept. 30. The company provides services such as records management and support for technology systems to the Department of Homeland Security.
"We felt this would give us a lot of credibility in the DHS," said Ray J. Oleson, SI's chief executive. "I think to be able to get a company that focuses on one of the more important agencies, and one of the agencies that is being funded, is tremendous."
About 52 percent of SI's revenue already comes from defense and intelligence agencies, including the Homeland Security Department. SI, which has about 2,000 employees, earned $10.2 million on $236.9 million in revenue in the 12 months ended Sept. 25.
Oleson said that no layoffs are expected and that the Harrisonburg facility will be maintained. Walter M. Curt, SEI's founder and chief executive, will leave the company but will continue to serve as an advisor for "as long as we can convince him to do that," Oleson said. Terms of Curt's compensation package were not disclosed.