February 12, 2007
VT acquires MILCOM
Support services and shipbuilding company VT Group (VT) has strengthened its U.S. business with the acquisition of MILCOM Systems Corporation (MILCOM) for a debt-free cash consideration of $42.5 million.
For the full 2007 calendar year, MILCOM is expected to generate revenues in excess of $100 million and a profit margin of approximately 5%.
Based in Virginia Beach, Va. and with offices throughout the United States, MILCOM designs, plans, installs and supports electronics and communications systems, primarily for the U.S. Government. The principal shareholder was the Josephine H Fleming Revocable Trust.
The majority of work is for the Department of Defense, including installing and servicing Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) systems across a wide range of U.S. Navy ships and submarines. MILCOM is also an established supplier to the homeland security and military air traffic control markets.
In April 2006 MILCOM was awarded a C4ISR performance based contract with the Space and Naval Warfare (SPAWAR) Center in Charleston. The contract, initially for one year, has four one-year extension options which would bring the estimated value of the contract to $577 million.