Nortel To Buy Gov. IT Services Firm
Nortel Networks Inc. is buying government IT services firm PEC Solutions for $448 million.
This acquisition will create Nortel PEC Solutions which will provide mission-critical solutions for U.S. federal, state and local government customers.
“Nortel is playing to win, and the acquisition of PEC is another example of Nortel’s unwavering commitment to strategic business initiatives in the government, services and security arenas,” said Nortel CEO and vice chairman Bill Owens. “This acquisition will aggressively position Nortel in the U.S. federal government IT market. This market is characterized by consistent and steady growth and presents a significant opportunity for Nortel, based on expected demand for our specific technology and services capabilities in this market.”
According to a press release, the acquisition of PEC is expected to provide the ‘accelerator’ for Nortel to compete more fully and completely in the government market. Nortel PEC Solutions will combine PEC’s high-end professional services and Nortel’s technology solutions to bring greater value – including a strong combined security offering – to existing partners, new partners, and customers in the U.S. government market.
“We expect growing demand in the government market for our portfolio of converged network solutions – Nortel’s core competencies,” said Chuck Saffell, Nortel’s president of Federal Network Solutions. “Linked with PEC’s strong and proven track record of over 20 years of delivering differentiating solutions and strong program management, Nortel PEC Solutions will be a winning combination for the U.S government customers we serve.”
The transaction is expected to be completed in June.