U.S. government powerhouse ManTech plans to pursue more IT business with the Centers for Medicare & Medicaid Services (CMS) by purchasing a 250-person solution provider.
The Herndon, Va.-based company - No. 29 on the CRN Solution Provider 500 - said its acquisition of Owings Mills, Md.-based Edaptive Systems will allow it to double down on opportunities in the federal healthcare space.
"This acquisition is consistent with ManTech's strategy to expand and strengthen our presence within the federal and civilian health markets, with our primary objectives of improving the quality of information available to all clinicians and the quality of care for those in need," George Pedersen, ManTech's chairman and CEO, said in a statement.
Edaptive was founded in 1999, and provides agile software development, testing and automation, business intelligence, data abstraction and IT services. The company works with more than 20 contracting partners, and has signed contracts with five operating divisions within the U.S. Department of Health and Human Services.
Terms of the deal, which is expected to slightly boost ManTech's financial results, were not disclosed, and ManTech didn't immediately respond to a request for additional comment. Wall Street responded favorably to the announcement Monday morning, with ManTech's stock climbing 2.2 percent in early trading to $43.05 per share.
Edaptive said it was interested in becoming part of ManTech due to its track record of delivering innovative solutions that address areas of high need for U.S. government customers. The company is currently the prime contractor on 19 major deals totaling more than $500 million in lifecycle value, and has delivered more than 40 projects since its founding.
"Our healthcare customers and, most importantly, the clinicians on the front line, will benefit from the combined capabilities, and our employees will benefit from expanded professional development opportunities," Frank Blair, partner at Edaptive Systems, said in a statement.
ManTech funded the acquisition with cash on hand, and will fold Edaptive into the company's Mission Solutions & Services (MSS) Group, which is led by Daniel Keefe. Keefe said during November's earnings call that ManTech is looking to move deeper into the health market due to a greater number of firm, fixed-price contracts in the space.
The company plans to increase its footprint in the federal health space by leveraging its capabilities around agile software development, cloud environments, mobile and use of big data analytics, Kevin Phillips, ManTech's president and chief operating officer, said during November's earnings call.
ManTech's MSS group supports the departments of Defense, State and Homeland Security, as well as federal health agencies by delivering global solutions focusing on logistics, test and evaluation and IT solutions.