ANDOVER, Mass. , July 31 /PRNewswire-FirstCall/ -- Dynamics Research Corporation (Nasdaq: DRCO), a leading provider of innovative engineering, technology and information technology services and solutions to federal and state governments, today announced it has signed a definitive agreement to acquire Kadix Systems, LLC, a rapidly growing, high-end management consulting firm. Kadix maintains practice specialties in organizational change, human capital, information technology, public and environmental health and learning and organizational development. It is focused on the U.S. Department of Homeland Security (DHS), Marine Corps information technology, military medical health, and federal civilian markets.
"Kadix Systems' high-end management consulting capabilities fully complement DRC's current core competencies in IT infrastructure, business intelligence, business transformation and training and enable greater access to key markets that we have targeted for growth," said Jim Regan , DRC's chairman and chief executive officer. "We look forward to welcoming Kadix employees to the DRC family of dedicated professionals serving our nation's highest priorities. We are committed to strategic growth that expands the mission-critical management and consulting work we provide to clients, fosters our long-standing culture of quality and excellence and enhances shareholder value."
Kadix Systems currently has about 270 employees and is headquartered in Arlington, Va. with additional offices in Greater Washington , Aberdeen, Md. , and Fort Sam Houston, Texas -- areas that are targeted for significant expansion due to the DOD BRAC. About 95 percent of Kadix' contracts have been awarded as prime and approximately 40 percent are performance-based.
Doug Layman , Kadix' President, will be appointed DRC Senior Vice President and Group Manager and continue to lead Kadix' business operations as a fourth operating unit, reporting directly to Mr. Regan. Mr. Layman said, "We are extremely excited to join the DRC family and leverage our combined capabilities to quickly create stronger expansion with both existing and new customers in target growth markets. DRC provides long-term continuity for our senior management team and expanded professional development opportunities for our employees. With a mutual regard for integrity and an exemplary track record of quality customer service, DRC is a natural fit for Kadix."
Kadix Systems has outstanding visibility into all DHS program management and management consulting efforts. It is one of two companies to have prime contracts on both the DHS Enterprise Acquisition Gateway for Leading Edge Solutions (EAGLE) contract (functional area 5 -- Program Management and functional area 3 -- Independent Verification and Validation Services) and DHS Program Management Strategic Sourcing (PMSS) vehicles.
Terms of the purchase agreement include a cash price of
DRC management will further discuss the benefits of this acquisition on its previously scheduled second quarter 2008 earnings conference call to be held at 4:30 p.m. ET today. The call will be available via telephone at (877) 741-4251, and accessible via Web cast at http://www.drc.com.
About Dynamics Research Corporation
Dynamics Research Corporation (DRC) is a leading provider of mission-critical technology management services and solutions for government programs. DRC offers forward-thinking solutions backed by a history of excellence and customer satisfaction. Founded in 1955, DRC is a publicly held corporation (Nasdaq: DRCO) and maintains more than 25 offices nationwide with major offices in Andover, Massachusetts ; Reston, Virginia ; and Fairborn, Ohio . For more information please visit our website at http://www.drc.com.
Forward-Looking Disclaimer
Safe harbor statements under the Private Securities Litigation Reform Act of 1995: Some statements contained or implied in this news release, may be considered forward-looking statements, which by their nature are uncertain. Consequently, actual results could materially differ. For more detailed information concerning how risks and uncertainties could affect the company's financial results, please refer to DRC's most recent filings with the SEC. The company assumes no obligation to update any forward-looking information.
CONTACTS: Investors: Dave Keleher Media: Duyen "Jen" Truong SVP and Chief Financial Officer Sage Communications (for DRC) 978.289.1615 703.584.5645 [email protected] [email protected]SOURCE Dynamics Research Corporation
