By Carten Cordell, Staff Writer
Vectrus Inc. (NYSE: VEC) made a bid to expand its footprint in both the federal and international government markets Tuesday, acquiring Herndon’s Zenetex LLC in a $112 million deal.
The local contractor — among the largest privately-owned companies in the D.C. area with $208 million in revenue in 2019, according to Washington Business Journal research — provides a range of information technology, logistics, engineering, communications and other services, including to allied countries through the U.S. government’s Foreign Military Sales (FMS) process.
For Vectrus, of Colorado Springs, Colorado, the move adds to its holdings in the defense, intelligence and IT infrastructure offerings, while expanding its operations overseas to the more than 40 countries that procure Zenetex’s services.
“Zenetex broadens our reach into the Intelligence Community and expands our engineering and digital technology offerings, which is critical as we expand our capabilities to help our clients’ transition to a more instrumented and converged approach to supply chain and facility management,” Vectrus president and CEO Chuck Prow said in a statement.
It’s not the first time that Vectrus, which spun off in 2014 from Exelis Inc., has sought to augment its government services offerings with a D.C.-area business. It purchased Alexandria-based Sentel Corp. for $36 million in 2018.
The Zenetex acquisition includes an anticipated $11 million transaction-related tax benefit and is expected to close in 2020. Vectrus executives said in a statement that they expect Zenetex to generate more than $200 million in revenue this year.
Zenetex was one of Greater Washington’s fastest-growing companies in 2013 and 2014, and again in 2019, according to Washington Business Journal research.
Tuesday, December 29, 2020