MCLEAN, Va., March 3 (UPI) -- Global Defense Technology and Systems Inc. is being acquired by an affiliate of California's Ares Management LLC in a deal valued at $315 million.
The arrangement between GTEC and Ares includes the assumption of debt and prior expenses.
"We are extremely excited about what this new relationship will bring to our customers and employees, and the return this represents for our shareholders," said John Hillen, president and chief executive officer of GTEC. "Ares Management will partner with GTEC's management team to help support our growth as the leading mid-sized national security company.
"We will continue to build and deliver exceptional solutions in cybersecurity, information architecture, network and systems engineering, intelligence analysis and force mobility and modernization to support the most pressing needs of our national security customers," he said.
Under the terms of the agreement, which was approved by GTEC's board of directors, the tender offer of $24.25 per share isn't subject to any financing contingencies.
Damian Perl, the founder and chief executive of Global Strategies Group, the former sole beneficial owner of GTEC and a current GTEC director, entered into a tender and voting agreement in support of the offer. Global is the largest beneficial shareholder in GTEC, owning about 42 percent of GTEC outstanding stock.
The per share purchase price of the tender offer represents a premium of about 51 percent over GTEC's closing stock price as of Wednesday and about 56 percent more than its 90-day average closing stock price.
Under the terms of the definitive agreement, closing of the tender offer is expected to occur in the second quarter of this year, subject to customary terms and conditions.
GTEC will become a private company, wholly owned by Ares affiliate Sentinel Acquisition Holdings Inc.
