KEYW plans to purchase Poole for $126M
KEYW Holding of Hanover, which provides cybersecurity services, agreed to acquire privately held Poole & Associates of Annapolis Junction, which provides systems and software engineering services to the U.S. intelligence community, for $116 million in cash and $10 million in stock.
Both companies’ boards have approved the deal, which is expected to close within 60 days. KEYW stock fell 3 percent on the news Tuesday.
Poole, which was founded in 1999, reported $24.8 million in revenue in the first half of this year, with an additional $35 million expected in the second half. KEYW reported revenues of $111.9 million for the first six months of the year, up from $86.6 million in the prior-year period; its profit rose to $493 million from $112 million.
"The acquisition of Poole continues to expand KEYW's footprint with one of our most important customers and adds several prime contract vehicles we believe have significant growth potential with a key customer,” Leonard Moodispaw, CEO of KEYW, said in a statement.
"We have known the KEYW team for many years, and as Poole & Associates entered this next high growth phase, we looked to KEYW as a partner with a similar culture that seeks to retain the small company feel and agility while adding economies of scale to compete for and manage large scale programs," added Mike Poole, founder and CEO of Poole & Associates.
KEYW also agreed to acquire Sensage of Redwood City, Calif., a privately held provider of security information and event management software systems. KEYW will pay up to $18 million in cash and up to $16.5 million stock, contingent on Sensage meeting revenue milestones in the second half of 2012.
Foreclosure, ‘underwater’ rates dip in Maryland
Maryland’s home foreclosure filing rate last month fell 7.8 percent from July, but was up 53.6 percent from August 2011, according to new data from RealtyTrac of Irvine, Calif.
The state’s rate was one filing per 1,617 households. The national rate of one filing per 681 households was up 0.8 percent from July, but down 15.2 percent from a year earlier.
Prince George’s County had the state’s highest rate, with one filing per 673 households.
Meanwhile, mirroring a national trend, the number and percentage of “underwater” residential properties with a mortgage in the Bethesda-Rockville-Frederick area fell in the second quarter to 48,673, or 16.6 percent, from 51,802, or 17.9 percent, in the first quarter, according to business information company CoreLogic of Santa Ana, Calif.
Nationally, 10.8 million, or 22.3 percent, of such properties were in negative equity — more was owed on their mortgages than the property was worth — at the end of the second quarter, down from 11.4 million properties, or 23.7 percent, at the end of the first quarter.
Medifast unit settles FTC claims for $3.7M
Jason Pharmaceuticals, a subsidiary of weight-loss company Medifast of Towson, agreed to a $3.7 million penalty to settle consumer advertising complaints filed by the Federal Trade Commission.
The agency claimed the company’s ads misled consumers by exaggerating the success of its weight-loss programs. Without admitting any wrongdoing, the company also agreed to refrain from making such claims, according to documents filed in U.S. District Court for the District of Columbia.
“ ... the Company is pleased that the parties reached an agreement on claim language and a protocol for future research to avoid further legal proceedings,” Medifast said in a statement.
New Chicken Out owner plans more eateries
The new owner of Chicken Out, the Gaithersburg chain of fast-casual restaurants that filed for bankruptcy last year, plans to expand its locations.
Chicken Out the Door, also of Gaithersburg, owned by Joseph Marinucci, acquired the chain's assets in a bankruptcy auction in January for $235,000, plus the assumption of certain liabilities, including leases.
When Chicken Out filed for Chapter 11 — the case later was converted to Chapter 7 liquidation — it owned 10 restaurants in Maryland, Northern Virginia and Washington, D.C. Six locations remain open.
In a statement released this week, Marinucci said he plans to open a new location in McLean, Va., this fall, with three more restaurants to open this year and 10 more in 2013. The restaurants will be branded as Chicken Out.
Marinucci has owned nightclubs and other businesses in this region and elsewhere, according to company spokeswoman Renie Freedman.
Chicken Out, established in 1991, had sales of more than $13 million in 2010, according to a bankruptcy filing.
Title insurance executive guilty of fraud
Harriet M. Taylor, 56, of Ellicott City, the former co-owner of two title insurance companies in Columbia, pleaded guilty this week in U.S. District in Baltimore to wire fraud for using $1.5 million in mortgage closing funds for personal use or to operate the companies.
Taylor used money from mortgage lenders to keep Regal Title and Loyalty Title afloat, according to her plea agreement. She also paid herself $477,878 from three company operating accounts.
She also failed to pay premiums on title insurance to the underwriter, Old Republic National Title Insurance, and recording fees.
Taylor faces up to 30 years in prison and a $1 million fine. Sentencing is scheduled for Jan. 17.