ATS Corporation Completes Acquisition of Potomac Management Group, Inc.
MCLEAN, VA – (BUSINESSWIRE) – September 4, 2007, McLean, VA. ATS Corporation (“ATSC”) (OTCBB:ATCT.OB), a leading information technology company that delivers innovative technology solutions to federal, state, and local government organizations, today announced that it has completed the previously announced acquisition of Potomac Management Group, Inc. (“PMG”), a provider of maritime security consulting, program support, and information technology to the U.S. federal government.
PMG, a privately-held company headquartered in Alexandria, Virginia, employs 180 full and part-time professionals supporting primarily the U.S. Coast Guard and the U.S. Navy. The acquisition supports ATSC’s strategic growth plan to strengthen its relationships with Department of Homeland Security and Department of Defense customers. With this transaction, ATSC will add key new customers who have expanding requirements and priority funding, particularly in port security initiatives.
ATSC Chairman, President and Chief Executive Officer, Dr. Edward Bersoff, commented, “With the close of this transaction, we will continue to strengthen our relationships with the Departments of Homeland Security and Defense. Additionally, we will immediately begin to recognize operational and financial benefits. We look forward to integrating PMG’s employees and operations and becoming a more dominant player in this key vertical.”
Under the terms of the definitive agreement, ATSC acquired PMG for $16.5 million, of which $13.75 million will be paid in the form of a one-day note, $500,000 in the form of ATSC common stock and promissory notes totaling $2.25 million. ATSC may also pay the PMG shareholders up to an additional $1.5 million in contingent consideration based upon achieving certain revenue targets within the first two years following the acquisition.
ATSC estimates PMG will generate annual revenue of approximately $13 million and EBITDA margins in the mid teens going forward. ATSC also expects the acquisition to be accretive to earnings and to further benefit from tax savings as a result of the transaction structure.
About Potomac Management Group
PMG is a maritime security and safety consulting firm, providing government and commercial clients with in-depth, proven expertise and assistance on global maritime operations, regulations, and program management. With a solid track record of success and a reputation for agile, customer-focused performance, PMG delivers practical solutions that meet client needs. Additional information about PMG can be found at www.potomacmgmt.com.