Daily News

View All News

Ares to Buy Global Defense

March 03, 2011

Global Defense Technology & Systems Inc. (NASD: GTEC), whose services include information technology staffing and solutions for national security agencies and programs of the U.S. government, today announced it has entered into a definitive agreement to be acquired by an affiliate of Ares Management LLC, an alternative asset manager and investment adviser

Including the assumption of debt and prior to expenses, the total transaction is valued at $315 million. The per share purchase price represents a premium of approximately 51 percent over GTEC's closing stock price as of March 2.

"We are extremely excited about what this new relationship will bring to our customers and employees, and the return this represents for our shareholders," said John Hillen, president and CEO of GTEC. "Ares Management will partner with GTEC's management team to help support our growth as the leading mid-sized national security company."

"We are attracted to GTEC's platform and business plan as well as the way its management has grown the business," said Matt Cwiertnia, senior partner of Ares Management. "We anticipate that this long-term investment will enable the existing management team to expand its cutting edge and established franchise -- one that is intrinsically involved with the growing markets for IT and national security."

Under the terms of the agreement, GTEC may solicit alternative acquisition offers from third parties through April 1, 2011. Should this merger take place, GTEC will become a private company, wholly owned by Sentinel Acquisition Holdings Inc., an affiliate of Ares.