Engility Holdings (NYSE: EGL) has closed its $11.50-per-share acquisition of Dynamics Research Corp. as part of a growth strategy to target markets such as healthcare and homeland security.
DRC holds 300 active contracts and that figure includes several positions on indefinite-delivery/indefinite-quality contract vehicles awarded by the Defense Department and civilian agencies, Engility said Friday.
Prime positions represent 80 percent of DRC’s contract portfolio and the company estimates its fiscal year 2013 revenue at between $274 million and $277 million per year.
Tony Smeraglinolo, Engility president and CEO, said the company sought to grow its customer base, access contract vehicles and diversify its revenue base.
Engility is also targeting additional business with agencies such as the U.S. Air Force and Navy; the departments of Health and Human Services, Homeland Security and Veterans Affairs; as well as those in the intelligence community.
Other markets Engility cited as potential growth areas through the acquisition as including research and development, ISR, financial regulation and reform, defense readiness, logistics and C3 (command, control and communications).
Engility paid approximately $89 million toward DRC’s existing debt, transactions fees and expenses through a $150 million accordion feature on Engility’s existing credit facility, cash on hand and its existing revolving credit facility.