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UPDATE 1-SAIC to buy consulting services provider

Mon Jul 6, 2009 9:21am EDT

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*R.W. Beck to be acquired

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*SAIC says U.S. claims over contract without merit

(Adds response to suit over contract from filing)

ATLANTA, July 6 (Reuters) - Science Applications International Corp (SAI.N) said on Monday that it signed an agreement to buy R.W. Beck Corp, a provider of business and technical consulting services to government, utilities and other commercial customers.

Terms weren't disclosed. In a statement, the companies said the deal would enable them to expand services to energy and hazard-preparedness markets and boost capabilities in high-growth areas.

R.W. Beck is based in Seattle. The acquisition is expected to close in August.

SAIC, a provider of technical services to the U.S. government, also said on Monday that U.S. allegations over a contract to provide support services at a Mississippi space center were without merit.

Last week, the U.S. Justice Department said it joined a false claims suit against SAIC that alleges some government employees conspired to ensure that SAIC and its partners won the contract, which was awarded in April 2004.

SAIC, which had annual revenue of $10 billion for the year ended Jan. 31, said in a filing with the Securities and Exchange Commission that the U.S. government was seeking about $116 million in damages, representing the amount of payments the company received under the contract, plus the tripling of such damages and civil penalties under the False Claims Act.

"Based on our internal review and our discussions with the government, we believe the government's claims are without merit," SAIC said in the filing. The company added that it has cooperated with the government's probe on this matter since it was first contacted in September 2006. (Reporting by Karen Jacobs; Editing by Derek Caney)



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