Wyle said recently it has agreed to acquire RS Information Systems (RSIS), significantly expanding the company’s capabilities and customer base in the federal information technology (IT) sector and also giving it a larger presence in the Washington, D.C., area.
Terms of the deal between the two private companies were not disclosed. Wyle, base in California, said Northern Virginia-based RSIS will become its fourth strategic business unit, joining the Aerospace Group, Life Sciences Group, and Test, Engineering and Research Group. RSIS is focused on providing IT and systems integration services. The acquisition is expected to close early next year.
Both companies are listed in Washington Technology’s list of top 100 federal prime contractors, with RSIS listed as 49th this year with $327.7 million in sales and Wyle 84th with $157.5 million in sales.
“This is an important addition to Wyle’s business portfolio as we continue to grow the company,” George Melton, Wyle chairman, CEO and president, said in a statement. “While we have some major contracts in the information technology field, this acquisition will enable Wyle to significantly broaden its presence in the information technology services sector and add key new contracts and customers that will complement our current client base. This acquisition makes Wyle a major federal information technology provider with a major presence in Washington, D.C.”
RSIS doesn’t disclose its sales but said it has over 100 prime contracts with the federal government and over 1,400 employees. Wyle has 2,800 employees. With the acquisition, Wyle expects to have about $800 million in sales next year.
RSIS’ key customers include the Air Force, NASA, the Federal Aviation Administration, and the Departments of Commerce (DoC) and Energy (DoE). RSIS is one of the 10 largest IT service providers to both the DoC and DoE. RSIS also supports the Defense Advanced Research Projects Agency, the Defense Information Systems Agency, the National Security Agency, the Office of the Secretary of Defense, and several Army and Navy offices. The company’s three divisions are Defense, Civilian, and Science and Engineering.
Stifel, Nicolaus & Co. served is RSIS’ financial adviser on the deal.