STG Group to acquire Preferred Systems Solutions in $119 million deal
Reston-based STG Group Inc. plans to acquire McLean-based Preferred Systems Solutions Inc. (PSS) in a deal worth $119 million.
STG said the deal would strengthen its position as a provider of technology, cyber, and data solutions to more than 50 U.S. government agencies.
PSS provides computing, analytics, program and acquisition management, cyber and software solutions to defense, intelligence and federal civilian agencies.
“With the acquisition of PSS, we are advancing our technological agility and ingenuity to meet the most complex and demanding national security challenges facing the U.S.,” STG President Phillip Lacombe said in a statement. “The combined company will have stronger core competences, greater scale and depth, the ability to develop new capabilities and focus on a wider range of customers managing larger, more complex federal programs.”
STG Group intends to finance the deal with a combination of debt and equity. The company expects the transaction to close during the first quarter of 2017, subject to customary closing conditions, including regulatory review.