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Defense contractor buys integrator Jullien Ent.

Defense contractor buys integrator Jullien Ent. SAIC buys its first physical security company, synergies found between the two firms

CHANTILLY, Va. - Science Applications International Corp., an engineering and research firm that competes with the likes of Lockheed Martin and Northrop Grumman, has bought local systems integrator Jullien Enterprises to offer the government market a turnkey solution for both physical and IT security. The transaction, the first in the physical security market for 34-year-old SAIC based in San Diego, Calif., could be one of many for the firm, which is looking to expand its reach in the U.S. defense sector. According to Gary Bell, telecommunications technology group manager of SAIC, the company began looking for an acquisition in the integrated security market about two years ago. The reason, he said, is due to the synergies between the telecommunications and physical security world. “It was a natural extension, particularly of this group because our group is made up principally of electronic engineers and electronic technicians,” said Bell. “Putting cameras and sensors or that sort of thing around a perimeter ties to a wire or radio system just like all the other telecom systems would,” said Bell. Jullien Enterprises, a systems integrator with 40 employees, fit the bill since approximately 75 percent of its business comes from the government market. But up until now, the privately held company passed on offers from suitors. “We’ve had numerous people call in many, many years. For the last five years there used to be a call a month,” said Gilbert Jullien, founder of Jullien Enterprises. “We really never had anyone that piqued our interest. There were a lot of companies that wanted to get into security but weren’t there. This was the first one that looked like it would be successful with the right combination of people.” While the purchase price for Jullien Enterprises was not released, the acquisition included 100 percent of the assets of the company. The deal was put together by investment banking firm Peter A. Sokoloff & Co., which represented Jullien Enterprises. It marked the first acquisition in the physical security market represented by Sokoloff. Jullien Enterprises is now part of SAIC’s Telecommunications Technology Group and will be known as the Jullien division. Company officials expect rapid growth for the new division, but were unable to share specific numbers. “We share a similar customer base in the military community and homeland security community,” said Jullien. “We were looking to expand rapidly and they have the people and staff in place to get us there quickly.” SAIC provides Jullien with significant manpower. Overall the firm employs 44,000 people, of which 500 work for the telecommunications group. The plan, said Bell, is to take Jullien’s “expertise in their area and use our electronic technicians” to expand the business. The two companies have already begun sharing their expertise, with Jullien’s customers being approached about SAIC’s capabilities and in turn SAIC’s customers about Jullien’s.

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