OSI to Acquire Defense Contracting Company

Tuesday, July 12, 2005
Offshore Systems International Ltd. announced it has signed a non-binding letter of intent to acquire a United States defense contracting company. 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. "We said a critical milestone for 2005 was to grow OSI through acquisitions," said President and CEO, John Jacobson. "We also said the U.S. market was a key target. This new company is complementary to our Applications business. We expect it will greatly expand our revenue opportunities, be accretive to earnings, and give us access to one of the largest security and defense markets in the world." Jacobson added OSI would also benefit because the new company is a growing, profitable, services-based business with historically lower revenue variability than OSI's navigation business. This newest announcement closely follows the company's first U.S. acquisition in April 2005 of Mapcon Mapping Consultants in Salt Lake City, Utah. OSI completed a financing of CDN$19.5 million, also in April, to support the company's rapid growth. "We believe the market opportunity for our products is considerable," said Jacobson, "and we are becoming a larger company to capitalize on this significant potential. Our goal is to become the 'go to' company in the defense and intelligence communities for geographic technology." With the letter of intent in place, OSI said it plans to proceed to due diligence and the development of definitive purchase and sale agreements immediately. The acquisition is expected to close by September 30, 2005, subject to the satisfactory conclusion of due diligence, approval by the board of directors of both companies, the shareholders of the target company, and regulatory approval.
Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Contracts

India to Develop Iran's Chabahar Port

India will float a company to develop Iran's Chabahar Port, a government statement said on Saturday, as New Delhi aims to take advantage of a thaw in Tehran's relations with world powers.

Boskalis Consortium Wins Suez Canal Expansion Contract

A consortium consisting of Royal Boskalis Westminster N.V. (Boskalis), Van Oord, NMDC (Abu Dhabi) and Jan de Nul (Belgium) has acquired a contract from the Suez

GTT Receives Order from HHI for Two LNGCs

Gaztransport & Technigaz (GTT), a designer of membrane containment systems for the maritime transportation and storage of liquefied natural gas (LNG) confirmed

Maritime Security

USCG Search For Boater Missing 50 miles South St Marks, Florida

The Coast Guard is searching for a missing boater 50-miles south of St. Marks, Florida, Sunday. Missing is George Taylor, 60, from Tallahassee, Florida, who

Austal Launches 5th CCP Boat

Austal launched yesterday its fifth in-series Cape Class Patrol Boat (CCPB) at the Company’s Australian Defence Facility in Henderson, Western Australia. Cape

Mount Whitney Departs Batumi, Georgia

The U.S. 6th Fleet command and control ship USS Mount Whitney (LCC 20) departed Batumi, Georgia, Oct. 18 after completing a successful port visit. While in Batumi,

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pod Propulsion Salvage Ship Repair Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1177 sec (8 req/sec)