Harris Corporation Completes Acquisition of Multimax Incorporated
Harris Corporation (NYSE:HRS), an international communications and information technology company, has completed its previously announced acquisition of Multimax Incorporated. Privately held Multimax was purchased for $400 million in cash. The company is being combined with Harris Corporation’s technical services business to form a new organization — Harris Information Technology Services. The organization will serve information technology (IT) outsourcing requirements of the U.S. government.
“Government IT is a key growth market for Harris" said Howard L. Lance, chairman, president and CEO. “We have now almost doubled the resources we are applying to this important market, and expect that opportunities for growth should increase across an expanded customer base. Multimax has a very talented workforce and leadership positions on several key Government-Wide Acquisition Contracts (GWACs) that should open the door for Harris to supply new and existing customers with additional technical services, as well as additional products and systems. The acquisition is complementary to our existing technical services business, provides additional scale, and positions us well to capitalize on the U.S. government market trend for increased outsourcing of IT systems and communications network support services. This is a very exciting expansion of our government service capabilities that also will increase our exposure throughout served government markets.”
“Multimax has a track record of strong revenue growth and excellent profitability, and a pipeline of new business opportunities across Department of Defense and civilian agencies,” said Ted Hengst, president of Harris Information Technology Services. “As part of Harris Information Technology Services, Multimax will continue to provide the same outstanding level of service to its existing customer base that has earned it such a great reputation in the IT market. The combined organization will apply additional scale and resources to maximize the value that Harris Information Technology Services delivers to its customers. We will employ a high level of synergy, energy, and teamwork to underpin the value we bring to customers from day-one.”
Multimax’s latest 12 months pro forma revenue ended March 31, 2007, was $315 million and pro forma operating income was $55 million*. The company has 1,100 employees located primarily at customer sites supporting a diverse portfolio of mission-critical network infrastructure programs. A large portion of the company’s workforce is technically certified and about 85 percent of its employees have government security clearances.
Customers include the U.S. Navy, Marine Corps, Air Force, Army, Department of Homeland Security, Department of State, Department of Veterans Affairs and the Federal Aviation Administration. Multimax has key positions on major contracts, such as the Navy Marine Corps Intranet (NMCI) program, and GWACs including NETCENTS, EAGLE, ITES-2S and FirstSource. These information technology procurement vehicles are broadly accessible by government agencies.
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.