San Antonio tech firm dNovus acquired for $38 million
San Antonio Business Journal
Software and information technology firm dNovus RDI has been acquired by a Florida company for $38 million.
Kforce Inc. (NASDAQ: KFRC), a professional staffing and solutions firm based in Tampa, Fla., purchased San Antonio-based dNovus with plans to move further into the federal government sector where dNovus is already a prime contractor. dNovus provides applied information technology services to the federal government and currently operates in 17 states. The company had revenue of $32 million for the 12 months ended Sept. 30.
Kforce expects the purchase will produce a future cash benefit of $8 million. At the same time, dNovus delivered $3 million in working capital at the time of closing, company officials said.
The acquisition will be financed with debt. Kforce currently has $42 million in debt outstanding.
It’s the first acquisition Kforce has completed in nearly two years, and one that could push the company’s government services segment over the $100 million revenue mark in 2009, said Kforce CEO David Dunkel in a prepared statement. dNovus has 250 employees, based mostly around San Antonio, Austin, and Washington, D.C.
Joining Kforce Government Solutions (KGS) division through dNovus are former company president Glen Shaffer, a retired U.S. Air Force major general and the one-time intelligence director for the Joint Chiefs of Staff. Shaffer will become an executive vice president with KGS, said division President Larry Grant, in a prepared statement.
As the acquisition was closing this week, Kforce instituted a plan to buy up $75 million worth of common stock in an effort to increase the value of shares still trading in the open market. Kforce had already approved a $50 million stock repurchase plan in February, and spent about $28 million on 3.2 million shares as of Sept. 30. Kforce shares, which closed at $6.80 Nov. 28 before the repurchasing plan was announced, closed Tuesday at $7.06. The stock had traded as high as $11.55 over the past year.
Formerly known as Research Dynamics Inc., dNovus was founded in 1989 and specializes in providing information technology services to military and government customers.
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