WASHINGTON - Canadian tech giant Nortel announced plans Tuesday to buy US-based PEC Solutions for 448 millions dollars US as part of a move to boost business for US government security contracts.
The purchase price of 15.50 dollars a share represents a 28 percent premium to the most recent closing price of Virginia-based PEC, which specializes in IT services for the US government in homeland security, law enforcement, intelligence, defense and civilian agencies.
"Nortel is playing to win, and the acquisition of PEC is another example of Nortel's unwavering commitment to strategic business initiatives in the government, services and security arenas," said Bill Owens, vice chairman and chief executive officer, Nortel.
"This acquisition will aggressively position Nortel in the US federal government IT market. This market is characterized by consistent and steady growth and presents a significant opportunity for Nortel, based on expected demand for our specific technology and services capabilities in this market."
PEC has some 1,700 employees and customers including the US Secret Service, Coast Guard, Department of Homeland Security, Transportation Security Administration, Immigration and Customs Enforcement, the Department of Justice, Federal Bureau of Investigation and other agencies.
04/26/2005 16:55 GMT