Advanced Communication Systems, Inc.
announced that it has acquired all of the outstanding shares of Semcor, Inc, a military space contractor for approximately $41 million, mostly in cash, and additional earn-out payments upon achievement of certain financial goals in the next 18 months. ACS expects the acquisition to be accretive to earnings.
Semcor provides a wide range of technical and engineering services,
primarily to the Department of Defense, in the areas of communication,
aviation, and information technology. Headquartered in Mt. Laurel, New
Jersey, Semcor has 42 offices in 24 states and employs more than 1,100 people. The company had revenues of approximately $95 million (unaudited) in the fiscal year ended December 31, 1997 and has a current contract backlog of approximately $350 million.
“We are extremely pleased with this acquisition and are very enthusiastic
about the potential this strategic combination will offer our customers,
shareholders and employees,” said George A. Robinson, Chairman of the Board, President and CEO of ACS. “This, along with the recent acquisitions of RF Microsystems, Inc. and Integrated Systems Control, Inc., significantly furthers ACS’s strategy to consolidate superior satellite communications capabilities. Together, ACS and Semcor present significantly expanded capabilities to our customers and the combined company will be in a more competitive position to expand its market share. In addition, this
acquisition provides ACS access to new market areas that are Semcor’s
strength, including DOD aviation support and commercial information
technology.”
“Semcor is an excellent addition to the ACS family,” continued Robinson.
“They have a solid reputation with their customers and we have been extremely impressed with the strength of their managers and their high quality operations.” Robinson said that ACS expects to maintain the current organization structure and retain Semcor’s existing management team. Vince Vidas will remain as President and CEO of Semcor.
Vidas stated, “We are extremely pleased to be partnered with an industry
leader such as ACS. The synergy and cultural fit between ACS and Semcor is
extraordinary. Both companies have shown growth in the core business areas of communications and information technology while Semcor offers ACS access to new market segments. The two companies’ business and customer base complement each other very well.”
Advanced Communication Systems provides communication and information
technology services and solutions, predominantly to U.S. government agencies and to a lesser extent commercial and international customers. The Company is headquartered in Fairfax, Virginia and has fifty-two locations in the United States and one in the United Kingdom.
