Publicly Traded MN IT Firm Sold For $35M; Stock Up 60%

Analysts International Corporation agreed to be acquired by a Georgia IT firm.

IT company American CyberSystems, Inc., (ACS) has agreed to buy Edina-based tech staffing and consulting firm Analysts International Corporation (AIC) for $35 million.
 
Atlanta, Georgia-based ACS announced Wednesday that it has agreed to purchase all outstanding AIC shares for $6.45 per share, which amounts to a 62.1 percent premium over AIC’s average closing stock price over the past 30 days.
 
Following the announcement of the sale, AIC’s stock rocketed nearly 60 percent to close at $6.38 on Wednesday.
 
It was not disclosed how the sale will affect AIC employees or its executives. Wednesday calls to both companies inquiring about further details, were not immediately returned.
 
However, AIC President and CEO Brittany McKinney said in a statement that, following the deal, AIC “employees will become part of a larger organization that provides expanded career opportunities and a broader network of colleagues with a shared passion for customer service.”
 
“And our shareholders will receive an immediate cash payment at a substantial premium to AIC’s average recent stock price,” she added.
 
“American CyberSystems continues to experience tremendous growth in the marketplace. The acquisition of AIC allows us to accelerate our plans for growth in specific desirable geographies and capitalize on marquee customer opportunities,” ACS CEO Raj Sardana said in a statement. “The AIC legacy of service excellence will remain intact and will be a strong complement to ACS and our combined customer base.”
 
In December, Milwaukee-based investment firm Heartland Advisors—which at the time said it owned about 9 percent of AIC—urged the company to pursue a merger or sale.
 
Heartland Advisors introduced a shareholder proposal that claimed that AIC’s “high quality talent and client lists have real value”—but due to its low market capitalization, the company had difficulty attracting attention on Wall Street. Therefore, AIC would be better off as part of a larger entity or as a private company, which would eliminate the costs of being a public company, the firm said.
 
This not only marks the loss of a Minnesota publicly traded company, but one that was led by a young, up-and-coming woman. McKinney was named one of Twin Cities Business’ “200 Minnesotans You Should Know” in 2011 after she became AIC’s president and CEO after having worked there for only four years.
 
In 2012, AIC reported $105.8 million in revenue, down about 3 percent from the previous year. Earnings, meanwhile, totaled $23.7 million, down about 10 percent from $26.4 million in 2011. For its most recent quarter, which ended June 29, the company reported profits of $5.8 million on revenue of $25.7 million.