HSCC to increase Nexus
ARLINGTON, Va.--Homeland Security Capital Corp., a publicly held holding company trading on the Pink Sheets market, formerly known as Celerity Systems, has followed a February acquisition of integrator Nexus Technologies by announcing an intent to acquire Cambridge, Mass.-based integrator Viscom Systems. Terms of the possible deal were not disclosed; Viscom expects $9 million in revenues this year.
HSCC is run by chairman Tom McMillen, a former Maryland congressman and professional basketball player. Reached by phone, McMillen said HSCC is looking to create a mid-Atlantic focused security integrator which it will eventually spin-off into a private company.
"What we're trying to do is build this regional presence," McMillen said. "Just from a management standpoint, we like to have our people within driving range of any jobs. It just gives us more capability."
For the holding company, "the security integration space is a good space to pursue this consolidation," McMillen said, "because of its fragmentation. There are just a handful of companies that are over $100 million. We're going to build step by step, see what we can do from there."
He said they're looking to target both government and commercial work, noting they've already worked with a nuclear power plant and a psychiatric hospital. Nexus doesn't currently have a GSA schedule, nor does Viscom, but "we're looking to acquire companies that do."
Nexus, without Viscom, will do between $10 and $20 million in revenues this year, McMillen said. HSCC was still in the due diligence process as Security Systems News went to press. The Viscom deal was expected to close in late May.