Perot Systems to acquire Tennessee engineering company
- By Dibya Sarkar
- Jul 19, 2005
Perot Systems intends to purchase Knoxville, Tenn.-based PrSM Corp., an employee-owned safety, environmental and engineering services company, for $7.2 million in cash.
The acquisition is expected to help Perot Systems' government services division, which is based in the Washington, D.C., area, provide the Energy Department with broader safety and quality engineering services and expand offerings into the Defense Department and NASA.
“The addition of the PrSM team of 65 skilled professionals allows us to move further up the value chain in an increasingly important market,” said Greg Bedner, president of Perot Systems Government Services, in a written statement. “The work that they provide to the Department of Energy fits in nicely with our overall capabilities.”
PrSM, which also has three other offices nationwide, reported 2004 revenue of $7.6 million, completing a three-year period where revenue grew at a 23 percent compound growth rate, according to Perot Systems. Most of PrSM's work is in subcontracting to DOE contractors.
Perot Systems believes that the acquisition will not affect its 2005 earnings, but should begin to add revenue in 2006. PrSM stockholders still must approve the deal.
Perot Systems created its government division in 2002 with the acquisition of ADI Technology, followed by the acquisition of Soza and Co. the following year. The division also works with DOD, Homeland Security Department and Intelligence Community and is entering the health information technology arena.