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KEYW Holding to Buy Poole & Associates in $126 Million Cash-and-Stock Deal

   By Kristin Jones 

KEYW Holding Corp. (KEYW) has agreed to acquire Poole & Associates Inc. for $126 million in cash and stock as the cyber-security company seeks to expand its access to a key intelligence client.

The company will pay $116 million in cash and an additional $10 million in stock for Poole, in a deal that is expected to immediately boost earnings, subject to final purchase price accounting.

The transaction is expected to close within the next 60 days.

KEYW has sought to broaden its client base through acquisitions over the past few years. Its customers span the intelligence and defense communities.

Poole, which was founded in 1999, provides systems and software engineering services to the U.S. intelligence community. It was recently awarded a five-year contract worth up to $150 million to provide systems engineering and program management support to an intelligence customer that is also KEYW's biggest client.

In the first six months of 2012, Poole generated $24.8 million in revenue, and expects to post more than $35 million in revenue in the second half of the year.

Poole is expected to add around $90 million in revenue to KEYW in 2013.

Along with expanding KEYW's footprint with a key customer, the acquisition carries significant growth potential, Poole Chief Executive Leonard Moodispaw said.

KEYW has received a commitment from Royal Bank of Canada (RY.T, RY) and RBC Capital Markets to provide as much as $225 million in senior secured credit facilities to finance the deal, refinance existing debt and fund working capital, replacing KEYW's existing senior credit facility.

Shares were up 1.1% in light after-hours trading, to $12.50. Through the close, KEYW shares were up 67% so far this year.


Write to Kristin Jones at


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(END) Dow Jones Newswires

September 10, 2012 17:17 ET (21:17 GMT)

Copyright (c) 2012 Dow Jones & Company, Inc.

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