Sil­ver­Sky ac­qui­si­tion to en­hance BAE growth strat­egy

SP's MAI - - CORPORATE NEWS -

BAE Sys­tems has en­tered into a de­fin­i­tive agree­ment to ac­quire Perime­ter In­ter­net­work­ing Corp., which trades as Sil­ver­Sky, a com­mer­cial cy­ber ser­vice provider, for $232.5 mil­lion on a cash free and debt free ba­sis. Ian King, Chief Ex­ec­u­tive, BAE Sys­tems, said: “The ac­qui­si­tion of Sil­ver­Sky en­hances our strat­egy to grow our Ap­plied In­tel­li­gence com­mer­cial cy­ber se­cu­rity business. Sil­ver­Sky has an es­tab­lished sales force, a com­ple­men­tary suite of scal­able prod­ucts and a large in­stalled cus­tomer base, pro­vid­ing a proven route to com­mer­cial mar­kets in the US and other coun­tries for our com­bined ca­pa­bil­i­ties.

“Sil­ver­Sky’s cloud-based e-mail and net­work se­cu­rity so­lu­tions, its highly skilled re­source in mar­ket­ing and en­gi­neer­ing, plus an ex­pe­ri­enced man­age­ment team are an ideal fit for Ap­plied In­tel­li­gence. To­gether, the en­larged business will of­fer cor­po­rate clients a suite of prod­ucts and ser­vices to pro­tect crit­i­cal in­for­ma­tion and net­works and de­tect cy­ber threats and fi­nan­cial crime. The en­larged business has out­stand­ing growth op­por­tu­ni­ties.”

Sil­ver­Sky is a lead­ing in­de­pen­dent cloud-based man­aged se­cu­rity ser­vices provider op­er­at­ing in the fast­grow­ing cy­ber se­cu­rity mar­ket of­fer­ing ser­vices in­clud­ing e-mail pro­tec­tion, net­work se­cu­rity and man­aged ap­pli­ca­tions. Its cus­tomer base in­cludes ap­prox­i­mately 5,500 cus­tomers in the fi­nan­cial ser­vices, re­tail, health care, en­ergy, crit­i­cal in­fra­struc­ture and man­u­fac­tur­ing sec­tors.

Sil­ver­Sky is largely fo­cused on the US mar­ket with a grow­ing business in Asia and Europe. The business cur­rently em­ploys around 400 peo­ple with its head­quar­ters in the Greater New York Area and prin­ci­pal op­er­a­tions in the US and the Philip­pines. Sil­ver­Sky is ex­pected to gen­er­ate sales for the 12 months ended De­cem­ber 31, 2014, of ap­prox­i­mately $75 mil­lion.

The pro­posed ac­qui­si­tion is ex­pected to be ac­cre­tive to earn­ings in the third year fol­low­ing clos­ing with post tax re­turns ex­pected to ex­ceed BAE Sys­tems’ cost of cap­i­tal in the fourth year fol­low­ing clos­ing.

The ac­qui­si­tion will be funded from BAE Sys­tems’ ex­ist­ing cash re­sources. The trans­ac­tion is con­di­tional upon re­ceiv­ing cer­tain reg­u­la­tory ap­provals and is ex­pected to close be­fore the end of 2014.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.