Chantilly, Virginia-based Integic is privately owned, made $161m in revenue in annual revenue, and has 600 employees. The company was founded in 1990 as Universal Systems Inc, and specializes in building and implementing document management software for government agencies.
Its main software product is e.Power, a suite of workflow management applications designed to automate enterprise procedures or transactions, and integrate clients’ existing information systems.
One of Integic’s major stakeholders is Xerox Corp, which said it would receive $96m for its stake. The sale is expected to be completed in the first half of this year.
Arlington, Virginia-based Northrop Grumman IT ranks as the largest federal sector IT services supplier based on its government sector revenue of $8.9bn in full-year 2003. This places it well ahead of its closest rival Computer Sciences Corp with federal sales of $5.5bn, and Lockheed Martin with $5.1bn.
Northrop Grumman continued to make solid progress in its latest financial quarter. In the three months ending September 30, 2004, revenue grew 8.3% to $1.26bn, with operating profit rising 11.1% to $80m.
The Bush administration’s increased spending on IT to support defense and national security initiatives has driven significant M&A activity among federal IT contractors in the last two years, as vendors look to add the scale to bid for the larger contracts.
Lockheed Martin, the fourth-ranked federal IT contractor recently announced a $462m deal to acquire The Sytex Group, a technical support company focused on the Department of Defense.
Despite deals such as this, the federal integrator community looks ripe for further consolidation. Of the top 100 suppliers ranked by VAR Business magazine, only 33 had annual federal revenue in excess of $100m, with only the top 50 having sales in excess of $50m.
