NexTech Solutions Has Agreed to Acquire Rome Research Corporation to Expand Service Offerings and Enhance Mission Support Capabilities

Rhea-AI Summary

NexTech Solutions (NTS) has agreed to acquire Rome Research (RRC) with the transaction expected to close by Q2 2024. This acquisition is part of NTS's strategy to diversify its customer base and expand services globally. PAR Technology (NYSE: PAR) announced the sale of its Government operating segment, including its subsidiaries PAR Government Systems (PGSC) and RRC, for $102 million. NTS aims to integrate RRC into its Mission Support Solutions (MSS) business unit, ensuring a smooth transition for employees and customers. In 2023, NTS received a strategic investment from Clairvest to enhance its growth in the defense technology sector.

Positive

• NTS's acquisition of RRC diversifies its customer base and expands global services.
• The transaction amount is $102 million, indicating a significant investment.
• Integration of RRC into NTS's MSS unit can potentially enhance operational capabilities.
• NTS has strategic support from Clairvest, a private equity fund with over $3 billion in assets.
• The acquisition may strengthen NTS's market position in the defense technology sector.

Negative

• The acquisition's success depends on the smooth integration of RRC into NTS, which may pose operational challenges.
• NTS will need to manage the transition carefully to avoid potential disruptions for RRC employees and customers.
• There is a risk that the anticipated benefits from the acquisition may not materialize as expected.

News Market Reaction

+6.12%

1 alert

+6.12% News Effect

On the day this news was published, PAR gained 6.12%, reflecting a notable positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

HUNTSVILLE, Ala., June 10, 2024 /PRNewswire/ -- NexTech Solutions (NTS) has entered into an agreement to acquire 100% of the issued and outstanding shares of common stock of Rome Research Corporation (RRC), with an expected close by the end of Q2, 2024. NTS provides mission-focused solutions with cutting-edge technology, systems engineering, testing and evaluation, software, and subject matter experts to support U.S. DoD missions.

PAR Technology Corporation (NYSE: PAR), a global restaurant technology company providing unified commerce solutions for enterprise foodservice, announced today that it has agreed to the sale of its Government operating segment via the sale of its wholly owned subsidiaries: PAR Government Systems Corporation (PGSC) and Rome Research Corporation (RRC) for a combined total of $102 million.

"NTS has agreed to acquire RRC to diversify our customer base and push our services into multiple COCOMS across the globe. NTS leadership has a deep history with OCONUS services and was impressed by the breadth of services offered by RRC and Rome's outstanding reputation and past performance," said CEO Joseph Paull.

In 2023, NTS secured a strategic investment from Clairvest, a top performing private equity fund with more than $3 billion of assets under management, to become a platform company for growth in the defense technology sector. NTS operates locations in Tampa, Huntsville, and Northern Virginia.

"This acquisition marks a significant milestone for NTS. We are excited to welcome the talented RRC Team and continue building upon what they have created. We will ensure a smooth transition for their employees and customers as we integrate them into NTS' Mission Support Solutions (MSS) business unit," said Kris Nagy, EVP MSS.

About NTS

For over 11 years, NexTech Solutions (NTS) has provided systems engineering, testing and evaluation, and operational support, integrating hardware, software, and subject matter experts to support U.S. DoD missions. Our experts and engineers understand the challenges organizations face in finding and implementing the best defense technology solutions to meet their mission-critical objectives as the global tech landscape dynamically evolves.

We proudly support the United States Department of Defense and many other U.S. government customers around the world to determine the best solutions for exceeding mission objectives.

To learn more about NTS, please visit our website NTS, or connect with us on LinkedIn, Facebook, and Instagram.

Contact: Emilie Daigle - marketing@nextechsol.com

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SOURCE NexTech Solutions

FAQ

What is the value of the acquisition between NexTech Solutions and Rome Research ?

The value of the acquisition is $102 million.

When is the expected closing date for NexTech Solutions' acquisition of Rome Research ?

The acquisition is expected to close by the end of Q2 2024.

What is the stock symbol for PAR Technology ?

The stock symbol for PAR Technology is NYSE: PAR.

What strategic investment did NexTech Solutions secure in 2023?

In 2023, NexTech Solutions secured a strategic investment from Clairvest.

How will the acquisition of Rome Research impact NexTech Solutions' service offerings?

The acquisition will diversify NexTech Solutions' customer base and expand its services globally.