TORONTO (11/17/2003) - Vancouver-based Sierra Systems Group Inc. announced that it is set to acquire Halifax-based Eastbridge Consulting Inc. and its subsidiary Eastech Advanced Development Inc. for an estimated C$6 million (US$4.6 million). Sierra said in a statement that it has signed a letter of intent for the acquisition.
Eastbridge and Sierra provide IT consulting and systems integration services in Maritime Canada. Vancouver-based Sierra has offices in Atlantic Canada as well as in the Eastern U.S., according to a statement it issued on Thursday.
The C$6-million purchase price is expected to include a component of shares of Sierra Systems -- about 40 per cent -- and there will be no assumption of long term debt. Sierra also said that it will add C$5.7 million in goodwill to its books.
"Our two organizations share a very similar culture and operate in the same specialty practice markets," explained Grant Gisel, president and CEO of Sierra Systems, in a statement. "Together, we will be a prominent player in Atlantic Canada and we will be able to further support Sierra Systems' existing eastern U.S. operations. We are delighted to have these skilled resources added to our Atlantic capabilities."
The deal is expected to close December 31, 2003 but is subject to regulatory approvals.
Sierra Systems was recently awarded a contract by the City of Los Angeles to create the Risk Management Information System and Use of Force System for the Los Angeles Police Department (LAPD). That contract was estimated in excess of US$12 million with current contracted services revenue of US$9 million to be delivered over two years.