Sparta Inc. sold for $416 million

Thursday, January 17, 2008

By MARIAN ACCARDI

Times Business Writer marian.accardi@htimes.com

U.K.-based Cobham will buy missile defense tech services company

International defense and aerospace firm Cobham has agreed to buy Sparta Inc., an employee-owned engineering and advanced technology company with about 300 employees in Huntsville, for $416 million in cash.

Sparta, which provides scientific, systems engineering and technical assistance services to defense and intelligence organizations, has about 1,200 employees at 20 U.S. locations. The company is headquartered in Lake Forest, Calif.

The transaction will place Cobham, headquartered in Wimborne, Dorset, U.K., in a leading position in the high-growth U.S. intelligence and missile defense markets, Cobham said.

"I am delighted that we have been able to reach agreement to acquire Sparta, which is one of the leading companies in areas of critical importance in the provision of U.S. national security," said Allan Cook, Cobham's chief executive.

"The strong incumbent management will provide Cobham with an exciting platform for growth in the Systems Engineering and Technical Assistance segment, which is complementary to our existing U.S. intelligence and defense capabilities.

"This is a major step forward in the implementation of Cobham's technology strategy and the creation of a significant Tier 2 business supplying the U.S. DoD and intelligence markets."

Management to remain

Sparta's management team will continue to run the company, according to a release.

Of the purchase amount, $381 million will be payable on completion of the acquisition, with the balance of up to $35 million to be paid over the next three years to holders of unvested options who remain with the company. The acquisition is expected to be completed in the second quarter this year, subject to regulatory and Sparta shareholder approvals.

After a short conversion period and the appropriate approvals, Sparta will become a separate strategic business unit within an expanded North America Cobham Division. During this phase, Sparta will report to Andy Stevens, Cobham's chief operating officer.

For the year ended Dec. 30, 2006, Sparta had $28.6 million in operating profits and $297.3 million in revenue.

Last summer, Sparta's Huntsville personnel moved into a new 95,000-square-foot office at 401 Diamond Drive in Thornton Research Park. Sparta was formed in Huntsville in 1979.

Missile defense services

Missile defense work has represented about 45 percent of the work for Sparta, which stands for Systems Planning, Analysis, Research and Technology Association. In missile defense, Sparta provides technical services, including systems engineering, modeling and simulation, test and evaluation, operations and sustainment planning and battle management, primarily to the Missile Defense Agency.



Sparta Inc. sold for $416 million Thursday, January 17, 2008 By MARIAN ACCARDI Times Business Writer marian.accardi@htimes.com U.K.-based Cobham will buy missile defense tech services company International defense and aerospace firm Cobham has agreed to buy Sparta Inc., an employee-owned engineering and advanced technology company with about 300 employees in Huntsville, for $416 million in cash. Sparta, which provides scientific, systems engineering and technical assistance services to defense and intelligence organizations, has about 1,200 employees at 20 U.S. locations. The company is headquartered in Lake Forest, Calif. The transaction will place Cobham, headquartered in Wimborne, Dorset, U.K., in a leading position in the high-growth U.S. intelligence and missile defense markets, Cobham said. "I am delighted that we have been able to reach agreement to acquire Sparta, which is one of the leading companies in areas of critical importance in the provision of U.S. national security," said Allan Cook, Cobham's chief executive. "The strong incumbent management will provide Cobham with an exciting platform for growth in the Systems Engineering and Technical Assistance segment, which is complementary to our existing U.S. intelligence and defense capabilities. "This is a major step forward in the implementation of Cobham's technology strategy and the creation of a significant Tier 2 business supplying the U.S. DoD and intelligence markets." Management to remain Sparta's management team will continue to run the company, according to a release. Of the purchase amount, $381 million will be payable on completion of the acquisition, with the balance of up to $35 million to be paid over the next three years to holders of unvested options who remain with the company. The acquisition is expected to be completed in the second quarter this year, subject to regulatory and Sparta shareholder approvals. After a short conversion period and the appropriate approvals, Sparta will become a separate strategic business unit within an expanded North America Cobham Division. During this phase, Sparta will report to Andy Stevens, Cobham's chief operating officer. For the year ended Dec. 30, 2006, Sparta had $28.6 million in operating profits and $297.3 million in revenue. Last summer, Sparta's Huntsville personnel moved into a new 95,000-square-foot office at 401 Diamond Drive in Thornton Research Park. Sparta was formed in Huntsville in 1979. Missile defense services Missile defense work has represented about 45 percent of the work for Sparta, which stands for Systems Planning, Analysis, Research and Technology Association. In missile defense, Sparta provides technical services, including systems engineering, modeling and simulation, test and evaluation, operations and sustainment planning and battle management, primarily to the Missile Defense Agency. © 2008 The Huntsville Times © 2008 al.com All Rights Reserved.