Ciber to acquire SCB Computer Technology

Greenwood Village-based Ciber Inc. (NYSE: CBR) has agreed to acquire SCB Computer Technology, a Memphis, Tenn.-based IT consulting company, in a deal worth approximately $55.9 million.

Each SCB shareholder will receive $2.15 per SCB share in a mix of $1.08 cash and $1.07 Ciber common stock. There are approximately 26 million shares outstanding.

Ciber, also an IT consulting company, may choose to increase the cash and decrease the stock components at its discretion.

Ciber inherits SCB's balance sheet, which had $51 million in total assets, $29.5 million in total liabilities and $21.5 million of net worth as of July 31, its last public filing and prior to closing its National Systems & Research Co. acquisition in the current quarter.

"On the heels of Y2K and economic and industry slow-downs, we felt it was very important to modify our business model for the 21st century. Becoming more project-oriented and public sector focused, as well as adding to our European footprint and a credible offshore solution, were most important," said Mac Slingerlend, Ciber's president and CEO.

"SCB Computer Technology will be a wonderful addition to our already impressive federal government and state and local government practices. We also don't want to minimize SCB's commercial sector work, approximately 15 percent of its revenue, which will also add beneficial customer relationships to our model."

Scott Cobb, SCB president and CEO, and members of his family, who own approximately 20 percent of the SCB stock, have committed to vote in favor of the sale. The deal should close in 90 days. SCB will issue a proxy to its shareholders seeking their approval.

Fifty percent of SCB's revenue is generated from the federal sector, with approximately 35 percent coming from state and local clients.