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SRA plans initial public offering

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SRA Companies Inc., parent company of Fairfax-based IT services company SRA International Inc., plans to hold an initial public offering of its common stock.

The company hopes to raise up to $100 million in the IPO.

BofA Merrill Lynch and Citigroup will act as joint book-runners of the proposed offering, which will be made only by means of a prospectus.

A filing with the Securities and Exchange Commission showed that the company had adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $178 million for the fiscal year ending June 30, 2014.

Its nine-month EBITDA for the period ending March 31of this year was $140.7 million.

SRA’s primary customer is the U.S. government. According to the filing, 70 percent of its revenue comes from IT services, including software and systems development, network infrastructure, cloud services and cybersecurity.

The remaining 30 percent comes from professional services in the areas such as intelligence analysis, bioinformatics and health sciences, energy and environmental consulting and enterprise planning and resource management.

The filing said the federal government spent $125 billion in fiscal year 2014 with third parties on the types of IT and professional services that SRA provides.

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