Merger Creates $100M Government Integrator


TekInsight.com and DynCorp Management Resources (DMR) have merged to create DynTek, a $100 million technology and management solution provider serving state and local government markets.

Steve Ross, CEO of TekInsight, will lead the new company. Irvine, Calif.-based DynTek (Nasdaq: DYTK) employs 400 employees and has clients in 17 states.

"DynTek has the broad range of services, extensive geographic coverage and industry knowledge needed to be a major player in the state and local government sector," Ross said. "[The merger gives us the critical mass and momentum to continue to expand our operations."

One of the reasons TekInsight merged with DMR was to leverage the company's outsourced program management expertise, which the company has built over the last five years, company executives said. DMR was a subsidiary of DynCorp, a $1.8 billion technology management services company in Reston, Va. DynCorp retains a 40 percent stake in the new company.

"This merger will take that business to the next level, providing the company, its customers and its employees with enhanced service offerings and significantly expanded markets," said Paul Lombardi, president and CEO of DynCorp.

DynTek's main offering, the Government Transformation Methodology, includes consulting, systems integration, application development, legacy integration, support and management services. The company's software suite is designed to help governments process tax and violation payments, licenses, parks and recreation management and deeds online.