RealTime IT News

Veridian's IPO Raises $216 Million

Veridian Corp. raised $216 million in its initial public offering (IPO) with a sale of 13.5 million shares at $16 per share. The Arlington, Va.-based government IT firm had originally announced it planned to sell 12.5 million shares at $15-$17 per share in hopes of raising of $175 million. The company began trading to the public on Wednesday morning.

Veridian plans to use the proceeds of the IPO for general corporate purposes and to redeem its Series A redeemable preferred stock and its 14.5 percent senior subordinated notes. Credit Suisse First Boston was the lead manager for the offering with Co-managers are Wachovia Securities, CIBC World Markets and SG Cowen serving as co-managers.

The company granted the underwriters an option to purchase up to an additional 2 million shares to cover over-allotments.

The company specializes in national security programs for the national intelligence community, Department of Defense, law enforcement, and other government agencies. Veridian's services include network security and enterprise protection; intelligence, surveillance and reconnaissance; knowledge discovery and decision support; chemical, biological and nuclear detection; network and enterprise management; and systems engineering services.

Almost 90 percent of the company's revenue from contracts with the Department of Defense and intelligence-related agencies.

Veridian is the fifth defense-related IPO this year.