UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

 

FORM 8-K

 

CURRENT REPORT

 

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

 

Date of Report (Date of earliest event reported):  May 23, 2007

 

 

SI International, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

 

 

Registrant’s Telephone Number, including Area Code:     (703) 234-7000

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Item 1.01                Entry into a Material Definitive Agreement.

On May 23, 2007, SI International, Inc., a Delaware corporation (“SI International”), entered into a definitive Stock Purchase Agreement (the “Agreement”) by and among SI International, LOGTEC, Inc. Inc., an Ohio corporation (“LOGTEC”), and Jolene Mynhier, Meredith H. Mynhier, John M. Nowak and trustees of various trusts holding equity interests in LOGTEC  (the “Sellers”).  The terms of the Agreement provide that SI International will acquire all of the outstanding capital stock of LOGTEC for $59 million in cash, of which $5.9 million will be held back by SI International for 15 months after closing in order to secure post-closing indemnity obligations of the Sellers.  The purchase price is subject to a two-way adjustment based upon whether the working capital of LOGTEC at the closing of the acquisition is above or below the target working capital specified in the Agreement.  Each of the parties to the Agreement has made customary representations and warranties and agreed to certain indemnification obligations.  The Agreement also contemplates a non-competition covenant agreed to by each of the Sellers.

As part of the acquisition, the Sellers have agreed to make certain tax elections for the benefit of SI International.  SI International estimates the net present value of such election is approximately $9 million.

The consummation of the acquisition is subject to a number of conditions precedent, including SI International obtaining the consent of its senior lender under its existing credit facility.  There can be no assurances that the acquisition will be consummated.

Item 7.01                                                 Regulation FD Disclosure.

On May 23, 2007, SI International issued a press release that announced that it has entered into an agreement to purchase all of the capital stock of LOGETC, which is attached hereto as Exhibit 99.1.

Item 9.01                Financial Statements and Exhibits.

(d)  Exhibits.

Exhibit No.             Description

99.1                         Press Release dated May 23, 2007*

The above-referenced statements may contain forward-looking statements that are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. The actual results of SI International, Inc. may differ materially from those indicated by these forward-looking statements as a result of various risks and uncertainties, including the following risks and uncertainties that relate specifically to the acquisition: (i) the risk that the transaction will not be consummated, including as a result of the failure of any of the conditions precedent; (ii) the risk that the LOGTEC businesses will not be integrated successfully into SI International; (iii) the risk that the expected benefits of the acquisition may not be realized, including the realization of accretive effects from the acquisition, the ability to maintain and/or strengthen the relationships with key clients, and to maximize cross-selling opportunities; and (iv) SI International’s increased indebtedness after the acquisition.  Other non-acquisition related risks and uncertainties include: differences between authorized amounts and amounts received by SI International under government contracts; government customers’ or prime contractor’s  failure to exercise options under contracts; changes in Federal government (or other applicable) procurement laws, regulations, policies and budgets; SI International’s ability to attract and retain qualified personnel; and the important factors discussed in the Risk Factors section of the annual report on Form 10-K filed by SI International with the Securities and Exchange Commission and available directly from the Commission at www.sec.gov.  SI International undertakes no obligations to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.

*  Included with this filing.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

		SI International, Inc.
		By:	/s/  THOMAS E. DUNN
			Thomas E. Dunn
			Executive Vice President,
			Chief Financial Officer and Treasurer
Dated:	May 23, 2007

 

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INDEX TO EXHIBITS

Exhibit No.		Description
99.1		Press Release dated May 23, 2007*

*                    Included with this filing.