General Dynamics to Acquire FC Business Systems, Inc.
FALLS CHURCH, Va. – General Dynamics (NYSE: GD) today entered into a definitive agreement to acquire FC Business Systems, Inc., a privately held information technology (IT) services firm headquartered in Fairfax, Va. The acquisition, approved by the boards of both companies, will be immediately accretive to General Dynamics. Terms were not disclosed. Subject to normal regulatory approvals, the transaction is expected to close by the end of the first quarter of 2006.
FC Business Systems, with anticipated 2005 sales of approx. $150 million, is a leading engineering and IT services company that offers a full spectrum of IT services to a wide variety of government customers. The company has extensive credentials in enterprise network services, including information assurance and information security; network engineering; and software application development and integration. The company has approx. 1,000 employees, more than 50 percent of whom hold national security clearances.
FC Business Systems will become part of the General Dynamics Network Systems business unit, a world-class IT solutions provider and integrator of converged enterprise and wireless networks. With more than 6,000 employees, General Dynamics Network Systems specializes in designing, integrating and supporting mission-critical information systems for government and commercial customers worldwide.
"FC Business Systems is an outstanding company that provides complementary capabilities and an expanded customer base for General Dynamics Network Systems,” said Michael Chandler, president of General Dynamics Network Systems. “FC Business Systems has significant skills in network engineering, application integration and information assurance, as well as an exceptional reputation within the Department of Defense and Department of Homeland Security as a provider of secure applications that create lasting value for its customers.”
Kamlesh Chainani, president and CEO of FC Business Systems, said, "FC Business Systems is known for its outstanding customer service and commitment as we support the needs of our national security customers. We are delighted to be joining General Dynamics and becoming an even more significant force in the federal IT services market."
General Dynamics, headquartered in Falls Church, Virginia, employs approximately 71,900 people worldwide and had 2004 revenue of $19.2 billion. The company is a market leader in mission-critical information systems and technologies; land and expeditionary combat systems, armaments and munitions; shipbuilding and marine systems; and business aviation.
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This press release contains certain forward-looking statements that are based on management’s expectations, estimates, projections and assumptions. Words such as “expects,” “anticipates,” “plans,” “believes,” “estimates” and variations of these words and similar expressions are intended to identify forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Actual future results and trends may differ materially from what is forecast in forward-looking statements.
General Dynamics Corporation (ticker: GD, exchange: NYSE)
News Release - Tuesday, December 13, 2005
Press Contact: (703) 876-3199
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