DigitalNet buys services division
- By Rutrell Yasin
- Oct 14, 2002
Ownership of Getronics Government Solutions Inc. (GGS) will soon change hands.
A provider of information technology services to the federal government for more than 30 years, GGS will be sold by parent company Getronics NV to DigitalNet Inc., a provider of networking services, which is backed by GTCR Golder Rauner LLC, an equity investment firm.
The deal, expected to close in November, is valued at about $223 million.
Although DigitalNet is only one year old, the company's chief executive officer, Ken Bajaj, is no stranger to the federal market. Bajaj started EDS with Ross Perot and later launched I-Net Inc., a network and desktop outsourcing company. I-Net was sold to Wang Laboratories Inc. in 1996, and Bajaj served as vice chairman of Wang. Getronics NV acquired the company in 1999, and Wang Government Services became GGS.
Bajaj later served as CEO of AppNet Inc., a provider of e-business solutions, before it merged with Commerce One Inc. two years ago. He now has come full circle and will be reunited with GGS' management team and employees.
"Our objective is to grow the business in the government space as well as [in] the commercial" sector, Bajaj said. His goal is for the $300 million GGS to grow into a company with $1 billion in revenue in three years.
GGS provides information assurance, desktop, networking and e-government solutions to various federal agencies, including the Defense, Justice and Treasury departments.
Bajaj intends to introduce new services to federal agencies, such as voice over IP and wireless networking. GGS will focus on desktop, networking and Web-based application development.