Vectrus Acquires HHB Systems, Advancing Physical and Digital Infrastructure Technologies within the Intelligence Community
Vectrus, Inc. (NYSE: VEC) has acquired HHB Systems, enhancing its capabilities in facilities management, logistics, and cybersecurity for the Intelligence Community. Founded in 2003, HHB Systems has over 50 skilled employees, with 95% holding Top Secret clearance. The acquisition aims to strengthen Vectrus’ position in the converged infrastructure market and is funded through cash on hand and a revolving credit line. This move follows Vectrus’ recent acquisition of Zenetex, positioning the company for greater growth opportunities in the Department of Defense and Intelligence Community sectors.
- Strategic acquisition of HHB Systems enhances Vectrus' offerings in facilities management and cybersecurity.
- Increased market presence within the Intelligence Community, leveraging integrated solutions.
- Funding through cash on hand indicates financial stability and reduces reliance on external financing.
- Integration of HHB's operations may present challenges and distract management from key priorities.
- Costs related to the integration might exceed expectations, affecting profitability.
- Potential revenue growth from the acquisition is uncertain and may take longer to realize.
COLORADO SPRINGS, Colo., Jan. 4, 2021 /PRNewswire/ -- Vectrus, Inc. (NYSE: VEC) announced today that it has acquired HHB Systems, a leading provider of high-end solutions for facilities management, logistics, engineering, enterprise operations, and asset management solutions supporting Intelligence Community (IC) projects. Additionally, HHB provides information technology and cybersecurity solutions to select clients.
Founded in 2003, HHB Systems brings comprehensive and proven capabilities which advance Vectrus' ability to deliver innovative, integrated solutions and further differentiates the company as a leader in the converged infrastructure market.
"The acquisition of HHB brings integrated solutions that support physical and digital infrastructures within the intelligence community and creates a stronger platform from which we can deliver fully converged solutions across all our clients' missions," said Sue Deagle, Senior Vice President and Chief Growth Officer of Vectrus. "I am delighted to welcome the talented employees of HHB to Vectrus. We look forward to building upon the HHB team's past performance, reputation, and long-standing and trusted relationships in the Intelligence Community."
Headquartered in Springfield, Virginia, HHB Systems has a 17-plus-year history of providing technology-enabled services and solutions to the Intelligence Community. The company has more than 50 highly skilled employees,
"Importantly, the acquisition of HHB further builds on our recently announced acquisition of Zenetex and together these acquisitions advance Vectrus' transformation into a higher-value, technology-enabled and differentiated platform. The Zenetex and HHB teams work together in the Intelligence Community market today, and the expanded opportunities under Vectrus to reach our existing DoD and IC clients open the aperture to even greater growth," Ms. Deagle concluded.
Vectrus funded the acquisition from cash on hand and its revolving line of credit.
About Vectrus
Vectrus is a leading provider of global service solutions with a history in the services market that dates back more than 70 years. The company provides facility and base operations; supply chain and logistics services; information technology mission support; and engineering and digital technology services primarily to U.S. government customers around the world. Vectrus is differentiated by operational excellence, superior program performance, a history of long-term customer relationships and a strong commitment to its clients' mission success. Vectrus is headquartered in Colorado Springs, Colo., and includes about 7,100 employees spanning 148 locations in 26 countries and territories. In 2019, Vectrus generated sales of
Forward Looking Statements
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 (the "Act"): Certain material presented herein includes forward-looking statements intended to qualify for the safe harbor from liability established by the Act. These forward-looking statements include, but are not limited to, the possibility that anticipated benefits of the acquisition may not be realized or may take longer to realize than expected; the possibility that costs related to the company's integration of HHB's operations may be greater than expected and/or that revenues following the acquisition may be lower than expected; the effect of the transaction on the ability of the company to retain customers and retain and hire key personnel of HHB and maintain relationships with their suppliers and customers, including the U.S. Government; responses from customers and competitors to the acquisition; the risk that the integration of HHB may distract management from other important matters; results from the acquisition may be different than those anticipated; other statements about our 2020 performance outlook, five-year growth plan, revenue, DSO, contract opportunities; the potential impact of COVID-19, and any discussion of future operating or financial performance.
Whenever used, words such as "may," "are considering," "will," "likely," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "target," "could," "potential," "continue," "goal" or similar terminology are forward-looking statements. These statements are based on the beliefs and assumptions of our management based on information currently available to management.
These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside our management's control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. For a discussion of some of the risks and important factors that could cause actual results to differ from such forward-looking statements, see the risks and other factors detailed from time to time in our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other filings with the U.S. Securities and Exchange Commission.
We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
CONTACT:
Vectrus
Mike Smith, CFA
719-637-5773
michael.smith@vectrus.com
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SOURCE Vectrus, Inc.
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