Northrop Grumman Corp. said Friday it agreed to purchase Integic Corp., a Chantilly, Va.-based information technology provider partially owned by Xerox Corp.
Terms of the deal weren't disclosed. Xerox said in a regulatory filing on Friday that it will receive $96 million for its undisclosed stake in Integic. Northrop expects the purchase to be earnings-neutral in 2005 and add to earnings next year.
Integic, which had sales of $161 million last year, will become part of the Federal Enterprise Solutions business unit of Northrop Grumman's Information Technology sector, Northrop said in a statement. Integic's customers include the Department of Defense, the State Department, General Electric Co. and Schering AG, and the National Association of Securities Dealers Inc.
"Integic's technology will allow us to strengthen and broaden our offerings in enterprise health IT systems, human resources systems and business process management solutions," said Jim O'Neill, corporate vice president and president of Northrop Grumman Information Technology.
Northrop and Lockheed Martin Corp., which announced Friday it would buy closely held software and services provider Sytex Group Inc. for $462 million, are buying up information technology companies with the aim of winning more IT contracts to make up for cuts to Pentagon fighter jet and shipbuilding programs.
Northrop's information technology business, based in McLean, Va., employs nearly 23,000 people and has annual sales of about $4 billion. The unit makes software used by federal and local governments and the military to manage records, documents and other data systems.
The transaction is expected to close in March or April, subject to customary regulatory approvals.
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