Herndon, Virginia-based DigitalNet had planned to sell 6.25 million shares in the range of between $14 and $16 on, which would have raised between $87.5m and $100m on the stock market. However, underwriters Citigroup Inc and Bank of America Securities said the IPO had been postponed due to poor market conditions.
The deal would have been the first IPO in the US for the past two months, and the first technology services flotation since rival government contractors Anteon International Corp and ManTech International floated in February 2002. Fairfax, Virginia-based Anteon set an issue price of $18 per share, and the flotation was a relative success in a tough investment climate. Anteon raised $72.6m through the listing, which easily beat its previous expectations of $46.5m. The company has since performed well on the stock market and reached a high of $29 in October.
Last October DigitalNet acquired Getronics’ Government Solutions business for 224m euros ($219.5m) in cash and shares, plus an additional 27m euros ($26.5m) depending on the operation achieving certain performance objectives over the subsequent 12 months. Government Solutions provides desktop and network services to the US federal government departments and employs 1,700 people. However, DigitalNet is thought to be pending the loss of two contracts including one for the Immigration and Naturalization Service, and the National Aeronautics and Space Administration.
Source: Computerwire
