HSCC intends to acquire integrator Viscom

Thursday, May 11, 2006

ARLINGTON, Va.--Homeland Security Capital Corp., a publicly held holding company trading on the Pink Sheets market, formerly known as Celerity Systems, 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. The Viscom deal is expected to close later this month.