Jacobs Engineering (JEC) Announces $59M Acquisition of Gov't Unit from TechTeam (TEAM)

June 4, 2010 7:00 AM EDT
Jacobs Engineering Group Inc. (NYSE: JEC) announced today that it has signed a definitive agreement to acquire TechTeam Government Solutions, Inc. (TTGSI), a wholly owned subsidiary of TechTeam Global, Inc. (Nasdaq: TEAM).

TTGSI is a 500-person information technology (IT) solutions company that provides support to federal, state and local government agencies, including the United States Department of Homeland Security, U.S. Army and U.S. Army Corps of Engineers. The firm's core competencies include systems integration, enterprise application integration, ERP implementation support, IT infrastructure support, network operations management, and call center operations.

The acquisition is subject to customary closing conditions, including approval by the stockholders of TechTeam Global, Inc., and is expected to close by late summer. Under the terms of the definitive acquisition agreement, Jacobs will acquire 100 percent of the stock in TTGSI for $59.0 million in cash, subject to certain adjustments set forth in the definitive agreement.

In making the announcement, TTGSI President David Kriegman stated, "Jacobs is an industry leader with a strong business model. Their world-class processes and tools will enable our team to compete more broadly and effectively and enhance our offerings for our clients."

Jacobs President and Chief Executive Officer Craig Martin said, "TTGSI brings new customers and capabilities to our growing government IT services business, and enhances our IT capabilities and services for our clients around the globe. This acquisition allows us to drive greater growth in our business."

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