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8-K - FORM 8-K - NCI, Inc. | c13215e8vk.htm |
Exhibit 99.1
For Information Contact:
Maureen Crystal
Tel: (703) 707-6777
E-mail: mcrystal@nciinc.com
Maureen Crystal
Tel: (703) 707-6777
E-mail: mcrystal@nciinc.com
NCI Agrees to Acquire AdvanceMed, a CSC Affiliate
RESTON, Va., February 25, 2011 (BUSINESS WIRE) NCI, Inc. (NASDAQ:NCIT), a
leading provider of information technology (IT), engineering, logistics, and
professional services and solutions to U.S. Federal Government agencies,
announced today that it has signed a definitive agreement to purchase 100% of
the stock of AdvanceMed Corporation, an affiliate of CSC. AdvanceMed is a
premier provider of healthcare program integrity services focused on the
detection and prevention of fraud, waste, and abuse in healthcare programs.
Additional financial and acquisition information will be disclosed upon
closing, which is anticipated to occur on or about April 2.
AdvanceMed provides investigative services to Centers for Medicare and Medicaid
Services (CMS). Serving CMS since 1999, AdvanceMed has grown rapidly
demonstrating the value and return on investment of integrity program
activities. AdvanceMed is one of the largest and well-established healthcare
integrity program contractors focused on the Federal Government market.
AdvanceMed, employing sophisticated information technology, data mining and
data analytical tools, offers a full range of investigative services that
support the identification and recovery of inappropriate Medicare and Medicaid
funds. Demonstrating its importance to CMSs mission, AdvanceMed supports
healthcare programs in 38 states with a staff of more than 450 professionals,
including information specialists, nurses, physicians, statisticians,
investigators, and other healthcare professionals.
NCIs Chairman and CEO, Charles Narang, said, The Obama Administration has
emphasized reducing fraud, waste, and abuse in Federal entitlements. AdvanceMed
is ideally positioned to support the program integrity initiatives of CMS and
other Federal Government agencies. They have a strong management and
professional team with a solid contract backlog. We are extremely pleased to
have AdvanceMed join NCI and believe that this acquisition will provide NCI an
outstanding platform to address this rapidly growing market opportunity.
About NCI, Inc.:
NCI is a leading provider of information technology (IT), engineering, logistics, and professional
services and solutions to U.S. Federal Government agencies. We have ISO 9001:2008 and other
industry-leading and globally recognized certifications. NCIs award-winning expertise encompasses
areas critical to its customers mission objectives, including enterprise systems management;
network engineering; cybersecurity and information assurance; software development and systems
engineering; program management, acquisition, and lifecycle support; engineering and logistics; and
training and simulation. A member of the Russell 2000 and S&P Small Cap 600 indexes, the company
was recently named to the Forbes list of Americas 25 Fastest-Growing Tech Companies for 2010, as
well as FORTUNE Magazines 2010 100 Fastest-Growing Companies list. Headquartered in Reston,
Virginia, NCI has approximately 2,600 employees and more than 100 locations worldwide. For more
information, visit our Web site at www.nciinc.com, or e-mail mcrystal@nciinc.com.
Forward-Looking Statement: Statements and assumptions made in this press release, which do not
address historical facts, constitute forward-looking statements that NCI believes to be within
the definition in the Private Securities Litigation Reform Act of 1995 and involve risks and
uncertainties, many of which are outside of our control. Words such as may, will, intends,
should, expects, plans, projects, anticipates, believes, estimates, predicts,
potential, continue, or opportunity, or the negative of these terms or words of similar
import are intended to identify forward-looking statements.
Such statements are subject to factors that could cause actual results to differ materially from
anticipated results. The factors that could cause actual results to differ materially from those
anticipated include, but are not limited to, the following: risks
concerning the future financial performance of the acquired company;
failure to successfully integrate the acquired company into our
operations or to realize any benefits from the acquisition; our dependence on our contracts with
Federal Government agencies, particularly within the U.S. Department of Defense, for substantially
all of our revenue; continued funding of U.S. Government, based on a change in spending priorities,
or in the event of a priority need for funds, such as homeland security, the war on terrorism; Federal Governmental shutdowns (such as that which occurred during the Federal
Governments 1996 fiscal year) and other potential delays in the
Federal Government appropriations process;
risk of a Federal Government use of funding agencies through a Continuing Resolution instead of a
budget appropriation, which may cause our customers within those agencies to defer or reduce work
under our current contracts; risk of contract performance or termination; failure to achieve
contract awards in connection with recompetes for present business and/or competition for new
business; adverse results of Federal Government audits of our government contracts; Federal Government
contract procurement (such as bid protest, small business set asides, etc.) and termination risks;
competitive factors such as pricing pressures and competition to hire and retain employees
(particularly those with security clearances); failure to successfully identify and integrate
future acquired companies or businesses into our operations or to realize any accretive or
synergistic effects from such acquisitions or to effectively integrate acquisitions appropriate to
the achievement of our strategic plans; economic conditions in the United States, including
conditions that result from terrorist activities or war; material changes in laws or regulations
applicable to our businesses, particularly legislation affecting (i) government contracts for
services, (ii) outsourcing of activities that have been performed by the government, (iii)
government contracts containing organizational conflict of interest (OCI) clauses, (iv) delays
related to agency specific funding freezes, (v) competition for task orders under Government Wide
Acquisition Contracts (GWACs), agency-specific Indefinite Delivery/Indefinite Quantity (IDIQ)
contracts and/or schedule contracts with the General Services Administration; and (vi) the
Federal Governments insourcing of previously contracted support services and the realignment of funds to
other non-defense related programs; and (vii) our own ability to achieve the objectives of
near-term or long-range business plans, including internal systems failures. These and other risk
factors are more fully discussed in the section titled Risks Factors in NCIs Form 10-K filed
with the Securities and Exchange Commission (SEC), and from time to time, in other filings with the
SEC, such as our Forms 8-K and Forms 10-Q.
The forward-looking statements included in this news release are only made as of the date of this
news release and NCI undertakes no obligation to publicly update any of the forward-looking
statements made herein, whether as a result of new information, subsequent events or circumstances,
changes in expectations or otherwise.
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