HANOVER, Md., April 1, 2011 (GLOBE NEWSWIRE) -- KEYW Corporation (Nasdaq:KEYW) is pleased to announce that it has acquired JKA Technologies, Inc. ( www.jkatech.com ), a highly regarded, privately-held provider of cyber superiority solutions to the U.S. Intelligence Community (IC). The transaction was completed on March 31, 2011.
JKA Technologies, Inc. (JKA) was founded in 2002 and is headquartered in Columbia, MD. They offer a broad range of mission critical cyber superiority solutions and support including network engineering, information assurance, and systems and software engineering. JKA generated $12.9 million in revenue in 2010 (unaudited), and is projected to deliver 2011 revenue in the range of $13-14 million. The company is expected to deliver profitability in line with similar IC industry solution providers. They have approximately 65 employees, of whom approximately 60 have security clearances, at the highest level.
"KEYW is continuing to execute a multi-faceted high growth strategy, which combines high organic growth and the acquisition of select, trusted providers of capabilities and solutions to our IC customers," according to Leonard Moodispaw, CEO and President of KEYW Corporation. "JKA has a strong reputation for performance and mission focus with one of our largest IC customers; they bring both breadth and depth of capabilities and customer relationships as they join KEYW. This acquisition is an excellent example of the value of our disciplined approach to acquisitions, as documented in the KEYW Acquisition Rules, recently posted on our website." (These rules are available at http://investors.keywcorp.com )
JKA is KEYW's tenth acquisition since beginning operations in August 2008, and the first acquisition this year. This acquisition brings KEYW to over 780 highly skilled employees, with over 80% cleared at the highest level. With each acquisition, KEYW is expanding its cyber superiority platform for providing agile solutions to the intelligence and defense community.
Under the terms of the agreement, KEYW purchased all of the outstanding capital stock of JKA for $10.5 million in cash and $2.5 million in shares of KEYW common stock). The purchase price is subject to post-closing adjustment based upon JKA's working capital as of the closing date. The number of shares of KEYW stock issued was based on the average closing price of KEYW common stock for the ten trading days immediately preceding closing. KEYW expects that the acquisition will be accretive, subject to a final purchase price accounting analysis.
About KEYW: KEYW provides agile cyber superiority and cybersecurity solutions, primarily for U.S. Government intelligence and defense customers. We create our solutions by combining our services and expertise with hardware, software, and proprietary technology to meet our customers' requirements. For more information contact KEYW Corporation, 1334 Ashton Road, Hanover, Maryland 21076; Phone 443-270-5300; Fax 443-270-5301; E-mail investor@keywcorp.com, or on the Web at www.keywcorp.com.
Forward-Looking Statements: Statements made in this press release that are not historical facts constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include but are not limited to statements about: JKA's projected 2011 revenue and profitability following the acquisition; the accretiveness of the JKA acquisition; statements about our future expectations, plans and prospects; and other statements containing the words "estimates," "believes," "anticipates," "plans," "expects," "will," "potential," and similar expressions. Our actual results, performance or achievements or industry results may differ materially from those expressed or implied in these forward-looking statements. These statements involve numerous risks and uncertainties, including but not limited to those risk factors set forth in our Form 10K Annual Report, dated and filed March 29, 2011 with the Securities and Exchange Commission (SEC) as required under the Securities Act of 1934, and other filings that we make with the SEC from time to time. Due to such uncertainties and risks, readers are cautioned not to place undue reliance on such forward-looking statements. KEYW is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
CONTACT: Ed Jaehne Chief Strategy Officer 443-270-5300