TechTeam Buys Federal Services Vendor

IT services vendor TechTeam Global Inc., on Tuesday said it had acquired Sytel Inc., a Bethesda, Md.-based provider of networking and other IT services to the federal government.

Under the deal, TechTeam has bought all of Sytel's outstanding stock for $18.5 million, with possible future payments if Sytel meets certain performance targets.

Sytel, which has about 300 employees, posted revenue of $28.3 million in 2003. Among its customers are the federal departments of Commerce, Homeland Security, and State.

Sytel has been noted as one of the Beltway's more successful minority-owned IT companies. IT was founded in 1987 by Jeannette Lee White, a former co-chair of the High Technology Council of Maryland.

TechTeam posted revenue of $95.1 million for the first nine months of 2004, a 44% increase over the same period in 2003. The company entered the federal IT services market through its acquisition of Digital Support Corp. a year ago.