Analysts International, Twin Cities tech pioneer, acquired for $35M [Star Tribune (Minneapolis)]
(Star Tribune (Minneapolis, MN) Via Acquire Media NewsEdge) Aug. 28--Analysts International Corp., an Edina-based data services firm that is one of the last with ties to the high-tech heyday the Twin Cities experienced in the 1960s, is being acquired for $35 million in cash by American CyberSystems of Duluth, Ga.
American CyberSystems' offer of $6.45 a share is a 62 percent premium above the average closing price of Analyst International stock over the last 30 days.
On Wednesday morning, shares in Analysts International raced upward about 60 percent and were trading at $6.40 at midday on the Nasdaq Stock Market.
"This merger is good for our customers, employees and shareholders," Brittany McKinney, Analysts CEO, said in a statement. The company's board has approved the offer.
In May, the largest shareholder of Analysts International, Heartland Advisors of Milwaukee, recommended that the company "be open to all strategic alternatives," based on several problems that it said were "causing the company to be discounted in the marketplace."
Founded in 1966, Analysts International emerged as a technology services company at a time when the Twin Cities was known as an early center of computer manufacturing, led by the work that firms like Control Data, Honeywell and Univac were doing in mainframes and supercomputers.
While those hardware companies saw their products overtaken by newer technology and eventually transformed or faded away, Analysts International persisted and survived, though it never became a giant. The firm provided IT services and consulting to companies of various sizes, including some giants like General Motors and IBM.
It benefited from the growth of outsourcing of data services in the 1990s and grew to its largest size in the latter part of that decade by assisting clients with the so-called Y2K crisis, in which computers across the world had to be reprogrammed to handle the date change to the year 2000.
Its revenue peaked at $620.2 million in 1999 and, the following year, it reported 4,000 employees in 45 cities in the U.S., Canada and United Kingdom.
Last year, the firm reported break-even earnings on revenue of $106 million. In its most recent quarter ended June 29, the company earned $519,000 on revenue of $25.7 million. It currently has about 870 employees and operates in 14 U.S. cities.
Steve Alexander --612-673-4553
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