Offshore Systems International
Ltd. is progressing with the due diligence process to acquire a
United States defense contracting company, and is well underway in negotiating
definitive agreements for the transaction. OSI first announced a non-binding
letter of intent to purchase the target company on July 11, 2005.
"The process is going very well," said President and CEO John Jacobson.
"Although it is taking longer than initially anticipated, discussions have
been and continue to be very positive."
Jacobson said that this is a very complicated acquisition. "The target
company operates in a heavily regulated field and while the regulatory
approval process is proving more complex than we anticipated in July, we're
optimistic and excited about where this process is leading and the progress
The acquisition is expected to be accretive, and to approximately double
OSI's revenue and employee base. The target company, with multiple offices in
the United States, is a supplier of technology and services to the U.S.
Department of Defense and key defense prime contractors.