IT security company
L-1 Identity Solutions
will buy privately held
, a provider of technical and professional services to the intelligence and military communities, for $66 million.
L-1 Identity will pay McClendon shareholders $33 million in cash and $33 million in equity.
McClendon has more than 200 employees, with more than 90% holding top secret security clearance, said L-1. Including McClendon employees, L-1 expects to have about 850 individuals with high-level government security clearance by the end of the year.
The transaction is expected to close in July and is likely to add $20 million of revenue and to
add to earnings.
Shares of L-1 were down 27 cents, or 1.3%, to $20.08 in recent trading. The stock is up nearly 32% this year.
Chantilly, Va.-based McClendon counts the National Geospatial-Intelligence Agency, National Security Agency and the Federal Bureau of Investigation among its customers.
McClendon, with its expertise in imagery intelligence, all-source intelligence analysis and systems engineering, is "highly complementary" to L-1 Identity's existing and prospective businesses, said L-1.
The latest acquisition would also strengthen the company's recent purchase of Advanced Concepts, said L-1.
L-1's acquisition of ACI was announced in May and is expected to close in July.
McClendon's revenue has grown about 33% from 2003 to 2006, and the company will have no debt outstanding at closing, said L-1.
L-1 expects McClendon's future growth to be consistent with the L-1 model of approximately 20% annual organic growth. McClendon had a total estimated backlog of $98 million as of Feb. 28, said L-1.