Anteon Corp. launches acquisition campaign, buys Vector

Anteon Corp. has embarked on an acquisition strategy that the company believes will make the Fairfax Va.-based integrator a $500 million company in less than three years.

Anteon launched its acquisition foray two weeks ago purchasing Vector Data Systems Inc. a $30 million Alexandria Va.-based company specializing in command control communications computers and intelligence (C4I) systems. Now Anteon is setting its sights on companies in the $50 million to $100 million range and above according to Noreen Centracchio vice president of corporate development at Anteon.

Centracchio said the company plans to make its second acquisition early next year and has "several more in the pipeline." She said Anteon is interested in acquiring companies in the systems engineering and systems integration field in the federal and commercial sectors. Anteon already offers integration software development network management systems engineering and system maintenance among other services.

Anteon which had $142 million in revenue in 1996 relied exclusively on internal growth until recently. The company has expanded at a compound annual rate of 23 percent since 1992. Anteon's computer services pacts with the General Services Administration's Capital and Pacific regions and its GSA services schedule have been among the company's most active vehicles Centracchio said.

Anteon's internal growth rate had put the company on a trajectory to reach the $170 million revenue mark for 1997. But Vector Data Systems' annual revenue stream will drive that figure toward the $200 million level Centracchio said.

Centracchio called Vector Data Systems a strategic purchase for the company. "It takes us into the international community the intelligence community and different areas within the DOD community that we were not in before " she said. "They had specific business areas we wanted to get into."

The buy allows Anteon to tap Vector Data Systems' "unique niche market and technical skills " said Richard Knop a partner with Boles Knop & Co. the Middleburg Va. investment banker that represented Vector Data Systems in the transaction. Boles Knop also represented Sysorex Information Systems Inc. in its July sale to Vanstar Corp.

Vector Data Systems concentrates on systems development integration and services associated with C4I systems. The company provides solutions in such fields as operations/intelligence systems support remote sensor image processing and logistics modernization among others. The company's United Kingdom subsidiary offers similar services throughout Europe.

Centracchio said the timing is good for Anteon's acquisition track because smaller companies are looking to join larger partners. "Many are looking to consolidate to gain the size it takes to further their growth " she said. "It's hard for those companies to compete against the megateam contracts."

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At A Glance

Anteon Corp.Headquarters: Fairfax Va.1996 Revenue: $142 millionEmployees: 1 500

Top executives: Joseph M. Kampf president and chief executive officer Mike Cogburn executive vice president and chief operations officer.

Prime contracts: General Services Administration: GSA Capital Region System Definition and Design GSA Pacific Region Business and Administration GSA Pacific Region Scientific and Engineering GSA ADP Services schedule Justice Department: Information Technology Support Services others.

Subcontracts: Transportation Department Information Technology Omnibus Procurement National Institutes of Health Chief Information Officer Solutions and Partners Defense Information Systems Agency Defense Enterprise Integration Services II Navy Information Technology Support Services others.