Monday, April 25, 2005

Nortel to Acquire PEC to Accelerate U.S. Federal Business

Nortel Networks agreed to acquire PEC Solutions, a leading government IT services firm, for approximately US$448 million (net of cash acquired) through a cash tender offer for all outstanding shares of the company.

PEC, founded in 1985 and based in Fairfax, Virginia, works with homeland security, law enforcement, intelligence, defense and civilian agencies across the entire scope of the U.S. federal government. The company has 1,700 employees and 30 program offices in nine states.

"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," said Bill Owens, Nortel's vice chairman and CEO.

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