Reston, Va., tech contractor NCI is set to acquire professional services firm Computech for $56 million.
The deal, announced after the markets closed Monday, continues the trend of mergers and acquisitions in the Washington services sector this year, such as Engility’s proposed acquisition of its Chantilly, Va.-based neighbor TASC.
NCI provides Internet cloud, cybersecurity and logistics services primarily for defense agencies, including the Defense Information Systems Agency, the Army and the Air Force. The Centers for Medicare and Medicaid Services is its largest civilian customer.
The company wanted to branch out beyond defense work and also add unique skills to its offerings, said Brian Clark, NCI’s president.
“In [Computech’s] case, we were able to achieve both objectives,” he said.
Computech is a Bethesda, Md., company that performs big data analysis, software operations, and maintenance and systems modernization work for civilian government agencies such as the Federal Communications Commission and the Internal Revenue Service, using a trademarked process known as agile operations and maintenance.
After the deal is closed, federal civilian work will make up 40 percent of NCI’s business, up from 25 percent, Clark said.
The acquisition is also expected to boost NCI’s bottom line. Computech is on track to generate more than $40 million in sales this year, which is an increase from the previous year, Clark said.
NCI recorded $75.7 million in sales in the third quarter, down from $77.9 million a year ago. Profits increased slightly to $2.4 million in the quarter, or 17 cents a share, up from $2 million, or 15 cents a share.
Computech employs a staff of about 170 in the Washington area who will join NCI’s workforce of about 1,800.
The company’s founder, J.D. Murphy Jr., is set to retire after the deal, while Computech President Lawrence Fitzpatrick will lead a new sector at NCI, Clark said.
The deal is expected to close Wednesday.
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