S3I Named Among the Fastest Growing High Tech Companies in the Washington,
D.C. Area for Two Years Running
NEWPORT BEACH, Calif., Feb. 23 /PRNewswire/ -- SM&A Corporation
(Nasdaq: WINS), a leading provider of systems engineering, IT solutions, and
proposal management services, today announced the acquisition of System
Simulation Solutions, Inc. (S3I). The acquisition, combined with existing
capabilities, strengthens SM&A's position as a dominant force in modeling and
simulation (M&S). The transaction was for cash, a promissory note, and a
two-year earn-out, contingent upon the achievement of certain operating
results. The other terms of the acquisition were not disclosed. This
transaction is representative of SM&A's policy to make acquisitions which are
accretive to the company's earnings on a twelve month trailing basis.
Specializing in designing, developing and applying powerful simulation
software products, S3I was founded in 1993 by its principals, Wayne Zandbergen
and Garth Morgan. The company earned a leading role in the production and
support of analytical M&S for the military services and the defense industry.
S3I built its reputation on THUNDER, currently the Air Force's standard tool
for evaluating large-scale operations. From that foundation, the company is
pioneering the application of advanced software techniques to create STORM and
AMOS, two new simulation products that will provide the Air Force with
cutting-edge software for analysis. S3I, based in Alexandria, Virginia,
employs more than 50 technical professionals, analysts and support personnel.
S3I's revenue grew from less than $130,000 in 1993 to more than $7.5 million
in 1999, a compound annual growth rate of 97%. S3I's rapid growth placed them
in the top 50 of the fastest growing technology companies in the D.C. area for
two years in a row according to Washington Technology.
SM&A President and Chief Operating Officer Michael Piraino said, "The
acquisition of S3I's talent pool and software development capability, when
combined with our successful line of modeling and simulation services and
products, such as Brawler(R), clearly solidifies SM&A's leading role in an
expanding market area. Corporate and military leaders increasingly rely on
modeling and simulation to support informed decision-making. We're excited to
be a major player in an important and growing field." S3I's operations will
be combined with SM&A's Systems Solutions Group (SSG) to form the Modeling &
Simulation Division of SSG.
Wayne Zandbergen, S3I's President and CEO, said, "Looking over our
business profiles and product lines, it's obvious that S3I and SM&A's Systems
Solutions Group are a natural fit. Working as one, we will be able to offer a
more comprehensive range of simulation solutions to a wider customer base.
This initiative provides a broad new range of opportunities for our developers
and analysts and provides SM&A with the critical mass necessary to expand
aggressively in the M&S business. Together, we have the technical and
marketing power to make major gains throughout the air and space simulation
market." Zandbergen will become the vice president of SM&A's newly-formed
Modeling & Simulation Division.
Garth Morgan, S3I's Vice-President and Chief Technology Officer, said,
"From a business standpoint, the growth area of M&S involves developing tools
to support the training and analysis requirements of 'information age'
organizations. From a technical perspective, the M&S challenge is to look to
the future without losing sight of the lessons of the past. At S3I, we
combined conceptual experience with technical innovation into a unique
development approach that suggests significant benefits across the lifecycle
of an M&S product. Becoming part of SM&A will allow us to offer the payoffs
of this approach to a wider set of customers and applications." Morgan will
also become a vice president for the newly formed Modeling & Simulation
Division.
Both Zandbergen and Morgan have executed three-year employment and
non-competition agreements in connection with the acquisition.
About SM&A
With more than 840 highly talented employees, SM&A provides high-end
systems engineering, program integration, information technology and
integrated proposal management products and services to aerospace, defense,
communications, and engineering companies. Statements herein concerning the
company's growth and strategies may include forward-looking statements. The
company's actual results may differ materially from those suggested as a
result of various factors. Interested parties should refer to the disclosure
set forth under the caption "Risk Factors" and elsewhere in the company's Form
10-K for the year ended December 31, 1998 and 10-Q for the quarter ended
September 30, 1999, for additional information regarding risks affecting the
company's financial condition and results of operations. Additional
information on SM&A is now available via the World Wide Web at
http://www.smawins.com . For more investor information via facsimile, please
call 1-800-PRO-INFO and enter client code SM&A.
SOURCE SM&A Corporation
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Related links:
http://www.smawins.com
CONTACT:
Michael A. Piraino, President and COO of SM&A
Corporation, 949-975-1550
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