Versar, Inc. [VSR] on Wednesday said it has agreed to acquire the physical and network security integration business of Johnson Controls [JCI] for $20 million in a deal that adds new products, services and customers to Versar.

The transaction is expected to close this month. Versar said the purchase price includes cash and contingent consideration.

Versar CEO Tony Otten. Photo: Versar
Versar CEO Tony Otten. Photo: Versar

Johnson Controls is selling its Maryland-based Security Systems (JCSS) business, which services federal clients by designing, installing and supporting physical, network security, and facilities management systems.

“The acquisition of JCSS, which is well known for its substantial security expertise, will be a great strategic fit for Versar, extending our client base, and enabling us to offer additional products and service to our existing clients,” Tony Otten, CEO of Versar, said in a statement. “An important element of our growth strategy is to leverage our service capabilities to generate more work with our existing clients and to more effectively compete for new customers and projects in the new economic environment.”

Versar, which is based in Northern Virginia, had $110.3 million in sales last year. The project management company provides solutions to government and commercial clients in the construction management, environmental services, munitions response, and professional services markets.