Global Defense Technology and Systems to be Acquired by Ares Management; Shares Soar (GTEC)
Global Defense Technology and Systems, Inc. (NASDAQ:GTEC) stock has touched a new high for the year with announcement of its acquisition through a cash tender offer at $24.25 per share by an affiliate of Ares Management. The transaction is valued at approximately $315 million, including the assumption of debt and prior to expenses. As per the terms of the agreement, the tender offer is not subject to any financing contingencies.
The company reported strong fourth quarter results, with 47% revenue growth as compared to same period previous year. The company reported fourth quarter revenues of $82.2 million, as compared to $55.8 million in the fourth quarter of 2009. This represents pro forma organic revenue growth of 37% for the fourth quarter. The company’s revenue from the Technology and Intelligence Services (TIS) segment for the fourth quarter 2010 was $31.3 million, which reflects 23% growth over 2009. In the Force Mobility and Modernization Solutions (FMMS) segment, fourth quarter 2010 revenue was $50.9 million, which reflects 68% growth over 2009. The growth was a result of the continued strong demand for its TIS capabilities and the significant ramp in revenue from two large camp solutions orders in our FMMS business, which totaled $28 million in revenue in the fourth quarter. The total segment operating income for the fourth quarter was $8.8 million, or 10.7%. The company reported operating income of $6.7 million, or 8.1% operating margin, and diluted earnings per share (EPS) of $0.39 for the fourth quarter.
The company reported revenue for the full year was $232.7 million, which reflects over 9% revenue growth compared to $212.8 million in 2009. The company’s revenue from the TIS segment was $105.6 million which reflects 17% growth over 2009. The FMMS segment revenue for the full year was $127.1 million, which reflects 4% growth over 2009. The total segment operating income was $24.1 million, or 10.4% for the full year 2010. The TIS segment operating margin was 9.4% for the full year, while FMMS’ was 11.1%. The company reported operating income for 2010 of $14.4 million, or 6.2% operating margin, and diluted earnings per share (EPS) of $0.96 for 2010.
Global Defense Technology and Systems stock is currently trading at $24.16. The stock is up 50 percent from its previous close. Global Defense Technology and Systems shares stock touched the high of $24.38 and lowest price in today’s session is $24.15.
The company stock has traded in the range of $10.37 and $24.38 during the past 52 weeks. The company’s market cap is $220.90 million.
