The engineering, construction and technical services firm URS Corp. [URS] this week said it has agreed to acquire federal information technology (IT) services provider Apptis Holdings, Inc., for $260 million in cash, providing it with an entrï¿½e into the high end federal IT market.
Apptis, which is based in Northern Virginia, had $298.2 million in sales last year and has about 1,000 employees. About 70 percent of the employees have security clearances with DoD.
For URS, which did over $9 billion in sales last year, adding a federal IT capability will help it better meet its customers’ expanding requirements, which increasingly include bundling engineering, construction and design with IT work.
"By enabling URS to serve the growing need for critical IT services, the addition of Apptis enhances our ability to continue to meet the evolving requirements of our federal customers and other agencies, including the intelligence community," Randall Wotring, president of URS’ Federal Services business, said in a statement. "The company is operationally and financially strong and offers significant growth opportunities. Apptis will complement the current engineering, construction and technical services that we provide to federal agencies and broaden our opportunities with existing and new clients."
Apptis’ customers include the DoD and military services, the Defense Information Systems Agency, and the Departments of State, Transportation, Justice and Homeland Security. The company’s services include network management, software engineering, IT infrastructure design and implementation, identity management, cyber defense and cloud computing.
Wotring said that Apptis help the military combat cyber threats.
Apptis is owned by the private equity firm New Mountain Capital. The transaction is expected to close within 60 days subject to regulatory approvals. The deal doesn’t include Apptis’ Iron Bow product re-seller subsidiary.