25 Oct 2004
Acquisition expands companys capabilities and creates one of the largest federal sector information technology providers.
BAE Systems North America today announced it has completed the acquisition of DigitalNet Holdings Inc. (DNET:Nasdaq), for $30.25 per share or approximately $600 million in cash with the assumption of DigitalNets debt of $93.25 million. DigitalNet, a leading provider of managed network services and information assurance solutions to the federal government including national intelligence agencies and the Departments of State, Justice, Treasury, Homeland Security, and Defense, expands BAE Systems capabilities in managed information technology and information assurance.
DigitalNet, which reported sales of $178 million for the six months ending June 30, becomes part of BAE Systems Information Technology, a new business unit designed to address evolving U.S. national security priorities for enhanced network centric infrastructure and information sharing among the intelligence, homeland security, and military communities. BAE Systems Information Technology also includes the companys Enterprise Systems organisation, creating one the largest federal sector information technology providers.
Our intelligence and national security customers continue to ask for larger-scale systems that facilitate information-sharing, said Mark Ronald, president and CEO of BAE Systems North America. Creating this new business will permit the company to pursue many of these efforts to meet critical federal IT requirements.
The acquisition of DigitalNet is consistent with BAE Systems strategy of acquiring profitable, growing businesses with strong, differentiated technologies that complement BAE Systems already broad range of capabilities and bolster our ability to provide integrated systems and transformational solutions for our customers. I warmly welcome them to the team! Ronald added.
Headquartered in McLean, Virginia, BAE Systems Information Technology will be led by Bill Shernit, currently president of Enterprise Systems, and will employ more than 4,000 people at sites throughout the U.S.
About BAE SYSTEMS
BAE Systems North America is a leading electronics, information systems and technology services company, and one of the largest providers of systems and services for the U.S. Department of Defense. BAE Systems North America currently employs approximately 30,000 people across 30 states, generating sales of more than $5 billion. The company designs, develops, manufactures and supports a wide range of advanced aerospace products, electronic systems and information technology for the U.S. Government and commercial customers.
BAE Systems is an international company engaged in the development, delivery, and support of advanced defence and aerospace systems in the air, on land, at sea, and in space. The company designs, manufactures, and supports military aircraft, surface ships, submarines, radar, avionics, communications, electronics, and guided weapon systems. It is a pioneer in technology with a heritage stretching back hundreds of years and is at the forefront of innovation, working to develop the next generation of intelligent defence systems.
BAE Systems has major operations across five continents and customers in some 130 countries. The company employs more than 90,000 people and generates annual sales of approximately 12 billion through its wholly owned and joint-venture operations.
For further information please contact:
John Measell, BAE Systems North America
Tel: +1 703-907-8261 Cell: +1 703-405-5010
www.na.baesystems.com
