SRA, an IT services and consulting company, is expected to be sold to a private equity firm for more than $1.8 billion.
Providence Equity Partners, which manages $23 billion in investment in more than 100 companies around the world, announced today it will take over the 33-year-old company after SRA’s shareholders vote on the deal. SRA says the acquisition is expected to close in the first quarter of fiscal 2012, which begins July 1.
SRA works for both defense and civilian agencies as well as in the commercial world. The company reported it made $1.66 billion in revenue in 2010. SRA made $869 million in the federal market in 2010, according to Washington Technology’s Top 100 rankings.
SRA is coming off a year where it saw its revenue grow by just over 8 percent. Last year it won two of its largest contracts – a single-award blanket purchase agreement with the Department of Agriculture (USDA) worth $500 million over seven years and a five-year project with the Federal Deposit Insurance Corporation (FDIC) worth $457.8 million.
“We believe in the merits of this transaction, which serves the best interests of our shareholders, as well as those of our 7,300 employees and more than 1,400 contracts with customers,” said SRA founder and Chairman Dr. Ernst Volgenau in a release. “We also look forward to partnering with Providence, whose values and culture are consistent with SRA’s longstanding ethic of honesty and service. We believe these characteristics are critical as we continue to build SRA and sustain its competitive positioning for the future.”
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