STAMFORD, Conn.--Biometrics giant L1 Identity Solutions announced May 2 that it would acquire Advanced Concepts Inc. of Columbia, Md., an IT company that specializes in the intelligence and military communities for $71.5 million in cash.
ACI had $45 million in revenues in 2006.
ACI is a privately held company that offers: IT solutions; systems engineering support, system/network communications architecture design, development and supplies; telecommunications research and development; and public safety consulting. The company will operate as a division of L1 and maintain current operations and headquarters.
Doni Fordyce, L1 executive vice president of corporate communications, said in an email interview that this acquisition is consistent with L1's post-merger second phase acquisition strategy where acquired companies would not necessarily be biometric-technology specific.
L1 wants "to add high value and synergistic businesses with best-in-class services and technologies, robust organic growth, and strong customer relationships. More specifically, ACI adds another complementary business to our services portfolio aimed at our intelligence and military communities," she said.
"The U.S. intelligence agency is comprised of many groups and we have a strong footprint across many of them today with our end-to-end solutions and services. With ACI, we will provide information technology and network security solutions, as well as systems engineering and development services, to these groups," Fordyce added.
L1 said that ACI shareholders have the opportunity to earn up to an additional $6 million in consideration, if key performance thresholds are attained. "L1 expects ACI's growth to be consistent with the L-1 model of 20 percent organic growth," the company said.
ACI president John Register said in a statement that being part of L-1 will enable ACI to "capture the larger programs and enable ACI to provide our customers with more capabilities."
ACI has 300 employees, 80 percent of whom have top secret and higher clearance and average 23 years of experience supporting contracts critical to U.S. national security.
The acquisition is subject to regulatory approvals and is expected to close by the end of the second quarter.