The Dynamics Research Corporation (DRC), a provider of innovative management consulting, engineering and technology solutions, announced an agreement to obtain High Performance Technologies, Inc. (HPTi). HPTi is a leading provider of high-end technology services, specifically to the federal health care and military technology markets.
In 2010, HPTi reported revenue of $90 million with 80 percent of sales united with DRC’s target growth markets. HPTi is known for its reliability, high performance to customers and solving some of the governments most technically-advanced problems.
“I have known the company and members of its management team since inception. We are very enthusiastic about having the HPTi staff with their impressive capabilities join the DRC team,” said Jim Regan, DRC’s chairman and chief executive officer.
The contract between the two companies include a cash prize of $143 million with closing for June 30 following the expiration of appropriate waiting periods under the Hart-Scott-Rodino Antitrust Improvement Act of 1976. Also, DRC will replace its current credit facility with a $110 million five-year loan, $20 million revolving credit facility and $40 million of subordinated debt with a six-year term. The senior credit facility will be provided by Bank of America.
The closing of acquisition of HPTi will be June 30. HPTi experienced a significant increase in revenue this past year, this is expected not to change with the DRC agreement in 2012.