firm, BAE, Buys NRI set up MTC Technologies for $448 Million
Dayton, Ohio, Jan 02, 2007
British defence firm, BAE Systems has entered into
a agreement to acquire MTC Technologies- a Dayton, Ohio-based company
for US$448 million. NRI Rajesh K. Soin, who founded Modern Technologies
Corp (MTC) with wife Indu Soin in Dayton, Ohio, in 1984.
MTC Technologies, shareholders will receive $24 in cash per share
of common stock, without interest, in the transaction, representing
a total consideration for MTC Technologies, fully diluted share
capital of US$367 million. Including the assumption of net debt
of $81 million. MTC Technologies, had net assets of $187 million.
MTC has about 425 employees locally and owns the building they
occupy at the Linden Ave headquarters and have been in Riverside
since they were founded in 1984. The company has 3,000 employees
nationwide and reported $415.5 million in 2006 revenue, up from
$373.3 million in 2005.
MTC Technologies will be integrated into BAE Systems Customer
Solutions operating group, headquartered in Arlington, Virginia,
as part of the company's Technology Solutions & Services (TSS)
line of business.
Herb Muktarian, a BAE spokesperson said:
- There are no plans right now to eliminate jobs or close facilities
due to the acquisition.
- Our history as an organization is that we make acquisitions
that are oriented towards growth
- What we tend to see is that those organizations (acquired) tend
BAE Systems' sales in 2006 exceeded $27 billion.
From Riverside's perspective, Murray said that he is sure Soin
"is doing everything he can to maintain the jobs here and continue
to contribute to the Dayton area."