SAIC to acquire Boeing IT services group

Science Applications International Corp. ended months of speculation today when it announced plans to buy Boeing Information Services, the Boeing Co., subsidiary which provides the federal government with information technology and integration services.

Boeing IS has 1,200 employees, and it projected revenues of over $300 million in 1999. Its key contracts include the Army Reserve Component Automation System and the Defense Information Systems Agency's major integration services contract. It also holds integration and service contracts at the Navy's vast China Lake, Calif., range and test facility as well as contracts with NASA and the Marine Corps.

Robert Beyster, SAIC's chairman and chief executive officer, said Boeing IS customers and employees will make "an excellent fit" with SAIC and will expand his company's opportunities in the government business area. SAIC expects to complete the transaction in one month, and Boeing IS president William Delany is expected to continue to manage the unit under its new ownership.

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