Sterling Software acquires DOD-centric services firm

Sterling Software Inc. today announced plans to buy Mystech Associates Inc. in a $25 million stock deal that will give the Dallas-based company a stronger position in the command and control and simulation markets.

Mystech, a Falls Church, Va.-based company that was founded in 1971, holds several Army contracts, including the Army Intelligence Master Plan and the Maneuver Control Systems Block IV Program.

The AIMP pact is an important Army contract for intelligence and command and control operations on the battlefield, and Sterling is confident Mystech will win a forthcoming recompete, said Phil Kiviat, vice president of business development for Sterling's Federal Systems Group.

Mystech has worked with Sterling as a subcontractor on the PASS-K contract, which Sterling holds with the U.S. Army Intelligence and Security Command to support the operations of U.S. forces in Korea.

Mystech also has a firm position in modeling and simulation, an area in which Sterling has done only minimal work. Sterling expects to keep most of the 300 Mystech employees, especially those involved in contracts, Kiviat said. The acquisition is subject to the approval of Mystech's stockholders. Mystech executives could not be reached for comment.

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