Strategic Step in Building SM&A's Operations Research And
War Gaming Capabilities
NEWPORT BEACH, Calif., Sept. 22 /PRNewswire/ -- SM&A Corporation
(Nasdaq: WINS), the nation's premier provider of integrated proposal
management, systems engineering and information technology solutions, today
announced that it has acquired Kapos Associates, Inc. ("KAI"). Privately
held, KAI is an operations research, war gaming and systems analysis firm that
provides management support services to senior decision-makers in government
and their counterparts in the private sector.
The deal was structured as a cash transaction with a two-year earn-out
contingent upon the achievement of certain operating results. Other terms of
the acquisition were not disclosed. The company further reported the
transaction is in line with SM&A's policy to make accretive acquisitions on a
trailing twelve months basis.
Founded in 1984 and headquartered in Arlington, Virginia, KAI operates
field offices in San Diego, California and Norfolk, Virginia. KAI has a core
staff of 35 highly experienced personnel and, depending on the assignment,
augments its professional staff with other seasoned consultants to customize
its project teams to meet the particular skill set needed for each client
project.
KAI has a strong record of performance in a broad range of tasks
supporting cabinet-level policy makers and clients from the Office of the
Secretary of Defense, the uniformed services, the commanders-in-chief of the
combatant commands, other defense agencies, the Treasury Department, the
Federal Aviation Administration, the Federal Emergency Management Agency, the
National Interagency Counternarcotics Institute, foreign governments and U.S.
corporations.
Michael Piraino, SM&A's President and Chief Operating Officer, stated, "A
key reason we made this acquisition is because of how complementary we believe
KAI's business is with our own Systems Solutions Group ("SSG"), in terms of
their client base and the high level of expertise of their staff. We are also
excited about the potential access we will have to the specialized markets
they now serve and the opportunity to cross-sell many of our core services."
From an organizational standpoint, KAI will continue to operate as a
stand-alone entity reporting to SM&A's Group President of SSG, Mr. Thomas
Amrhein.
SSG Group President Thomas Amrhein said, "This acquisition marks the
evolution of a critical phase in our business and client service strategy.
Building an operations and war gaming capability greatly enhances SSG's
competitive position by giving us a more full service slate of services.
This, in turn, makes us even better positioned to capture a larger share of
business from our core base of clients."
KAI was founded by Mr. Ervin Kapos in 1984 , and he will continue as
President of KAI under the terms of a two-year employment agreement. Mr.
Kapos stated, "We are very pleased to become a part of such a prestigious
company as SM&A. We gain strength as a company by the relationship and are
able to continue to provide service to our long-term customers. We at KAI
share the same commitment to quality and maintaining the highest level of
integrity at all times as does SM&A."
About SM&A
With over 700 highly talented employees, SM&A provides integrated proposal
management, high-end systems engineering, program integration and information
technology 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, including, without limitation, the company's ability to recruit and
retain qualified technical personnel; identify, acquire, and integrate
suitable acquisition candidates; obtain sufficient working capital to support
such growth; and compete successfully with existing and future competitors.
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 Form 10-Q for the quarter ended June 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 Internet's World Wide Web at http://www.smawins.com . For
more investor information via facsimile, please call1-800-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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