Hanover, Maryland-based KeyW completed the transaction a month after it agreed to acquire Sotera as part of efforts to advance strategic growth and expand footprint in the intelligence community.
Both companies expect the integration to conclude by December to form a combined entity that will offer a portfolio of data analytics, cloud, cyber, analysis and operations, machine learning, geospatial and engineering support services to agencies within IC and the Defense Department, KeyW said Wednesday.
KeyW CEO Bill Weber and Chief Financial Officer Mike Alber will continue to serve in their respective posts and KeyW’s board of directors will continue to exercise executive management of the combined firm.
The combined firm is projected to record nearly $535 million in 2017 pro forma revenue and over $55 million in adjusted earnings before interest, tax, depreciation and amortization.
The combined entity will operate with approximately 2,100 employees and leverage Sotera’s 12 indefinite-delivery/indefinite-quantity contracts and governmentwide acquisition vehicles to provide new and complementary service offerings to IC clients.
KeyW said it funded the deal with proceeds from its second common stock offering, a five-year senior secured term loan worth $135 million and a revolving credit facility valued at $50 million organized by RBC Capital Markets.