Anteon Adds Smart Card Technology

Anteon International has signed a definitive agreement to acquire Information Spectrum, Inc. (ISI), for $90.7 million in cash. The Annandale, Va.-based ISI is the prime contractor for secure identification and access management solutions for the Department of Homeland Security’s Permanent Resident Card and the Department of State’s Border Crossing Card programs.

Under the terms of the agreement, the Fairfax, Va.-based Anteon will acquire 100 percent of ISI’s stock. ISI will not have any outstanding indebtedness at closing.

Anteon will finance the acquisition through its existing credit facilities, and the deal will be accounted for under the purchase method of accounting. Assuming the closing of the acquisition by the end of May, Anteon expects the transaction to add approximately four cents per share to full year 2003 earnings.

“The acquisition of ISI is consistent with our strategy to selectively acquire companies that possess strong operational management, access to growing government markets, leveragable technologies, strong financial performance and cultural compatibility,” said Joseph M. Kampf, president and CEO of Anteon. “Due to the nation’s homeland security requirements, we expect dramatic growth in the use of credential card technologies for physical and logical access control throughout the government community.”

Founded in 1971, ISI is a privately held company with more than 1,200 employees and 27 locations nationwide. For the fiscal year ended November 30, 2002, ISI generated $8.8 million of adjusted operating income and $10.1 million of adjusted EBITDA. The adjustments to operating income were largely related to private company shareholder expenses.

In addition to its credential card technologies, ISI also provides logistics, training and engineering for the U.S. naval Air Systems Command.

With 2002 reported revenues of $826 million, Anteon has approximately 5,800 employees and more than 80 offices worldwide and frequently ranks among the top information technology integrators based on independent surveys.

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