The non-profit public service research institute Analytic Services Inc. (ANSER) acquired South Carolina-based Advanced Technology International (ATI) for $25 million, the organization said Monday.

Terms of the deal include a $15 million earn-out provision if ATI meets certain growth milestones over the next four years.

ATI was the private, non-profit affiliate of the South Carolina Research Authority (SCRA) created in 1998. SCRA was chartered by the state in 1983 to improve the growth and development of South Carolina’s technology sector. It is funded through income from its government contracting affiliate and funds from the Industry Partnership Fund.

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ATI manages research and development collaborations for the U.S. government and many Department of Defense (DoD) agencies in several sector including medical technologies and healthcare, shipbuilding, ordinance, DoD prototypes, and the electromagnetic spectrum.

SCRA said it expected the transaction to close on Tuesday.

ANSER is gaining about 165 employees with the acquisition, which raises the company’s total headcount to 515. ANSER projects revenue increases to $500 million yearly. ANSER said ATI will keep all of its positions intact and will remain in Summerville, SC. This raises the number of locations ANSER is working in to 44 states.

“This announcement is a win for everyone. South Carolina gets a great new corporate citizen in ANSER, SCRA has recommitted itself to growing the state’s Innovation Economy and we keep the core ATI business and jobs in Summerville,” South Carolina Secretary of Commerce Bobby Hitt, said in a statement.

ANSER said the acquisition diversifies the company’s offerings and will help it leverage economies of scale to make those offerings available at a lower and more competitive price point.

“This acquisition gives us greater visibility of important defense technology developments across the country. That knowledge will enable us to better advise our government clients about the range of solutions at their disposal, thereby enhancing the value we deliver,” Carmen Spencer, president and CEO of ANSER, said in a statement.

“The alliance between our two organizations creates an interesting and unusual partnership that links the application of innovation to a myriad of complex subject areas. The opportunity to join forces with ANSER enables this newly integrated team to develop technology around the country and transition technology innovation into practical applications,” Chris Van Metre, president and CEO of ATI, added.

The investment advisory firm The McLean Group served as ATI’s financial advisor on the deal.