Integral Systems — A Secure Transaction For Secure SATCOM

Integral Systems,Inc., (Nasdaq:ISYS) announced the Company’s acquisition of privately held CVG, Incorporated and its subsidiary, Avtec Systems, Inc. (together, “CVG-Avtec”). The acquisition further expands the reach of Integral Systems‘ product line and customer base within the Department of Defense (DoD).

CVG-Avtec, based in Chantilly, Virginia, has approximately 100 employees and will be integrated into Integral Systems’ Products Group as Integral Systems SATCOM Solutions. Integral Systems will pay an aggregate of $34,675,000 in an all cash transaction or approximately one times the trailing twelve months revenue of CVG-Avtec. Additional terms of the transaction are summarized in the current report on Form 8-K filed today by Integral Systems with the Securities and Exchange Commission. Concurrent with this acquisition, Integral Systems will obtain a new $55 million secured credit facility with three syndicate banks led by Bank of America, N.A. The acquisition will be financed with a combination of the Company’s existing cash available and borrowings under the new line of credit.

CVG-Avtec provides secure, satellite-based communication solutions to government and commercial markets. The company offers integrated ground systems infrastructure solutions for satellite communications, payload data processing, simulation and testing for military, intelligence, government, and commercial programs worldwide.