March 3, 2011 / 12:30 PM / 9 years ago

UPDATE 2-Defense company GTEC to go private in $222 mln deal

* Deal represents 51 percent premium

* Cash tender offer expected to close in Q2 (Adds details, background in paragraphs 3-8)

March 3 (Reuters) - Global Defense Technology & Systems Inc said it agreed to be acquired by Ares Management LLC in a $222 million deal that would take the defense intelligence company private.

The cash tender offer of $24.25 per share represents a premium of 51 percent over GTEC’s Wednesday closing price. Including debt, the deal is valued at $315 million, GTEC said.

Last year many mid-tier security and defense companies were snapped up by companies looking to cash in on the demand for niche technologies in cybersecurity, civil security, surveillance and intelligence.

Early this year, sources told Reuters defense supplier Integral Systems Inc has hired advisers to review strategic alternatives, including a potential sale.

Damian Perl, the founder and chief executive of Global Strategies Group, the largest beneficial shareholder in GTEC with about 42 percent of share, entered into a tender and voting agreement in support of the offer, GTEC said.

McLean, Virginia-based GTEC provides technologies that support counter-terrorism and security intelligence, targeted at the Department of Defense.

The company in January had said it sees growth in its technology & intelligence service and more orders in the force mobility & modernization systems units.

GTEC shares have gained more than half of their value in the last six months. (Reporting by Bijoy Koyitty in Bangalore; Editing by Maju Samuel and Don Sebastian) (bijoy.koyitty@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: bijoy.koyitty.reuters.com@reuters.net))

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