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DLH Acquires Social and Scientific Systems to Strengthen Core Capabilities
Wednesday 12 June 2019

12 June 2019 - Atlanta, US-based DLH Holdings Corp. (NASDAQ: DLHC) a healthcare services and solutions provider to federal agencies has acquired Maryland, US-based public health service organisation Social and Scientific Systems (SSS), the company said.
SSS was purchased for USD 70m in cash, or USD 63m net of transaction-related tax benefits worth USD 7m on a net present value basis. DLH estimates that SSS will contribute approximately USD 65m, on an annualised basis, to revenue of the company going forward.
The funded component of acquired backlog was approximately USD 40m.
DLH financed the acquisition through a new 5-year, USD 95m, secured bank credit facility. First National Bank of Pennsylvania acted as agent, and F.N.B. Capital Markets and M and T Bank acted as joint lead arrangers.
SSS will operate as a wholly owned subsidiary of DLH Holdings Corp.
DLH said the acquisition expands the company's public health and life sciences focus area, diversifying the company's portfolio and bringing scale to support growth.
DLH (NASDAQ: DLHC) serves federal government clients throughout the United States and abroad delivering technology enabled solutions in key health and human services programmes.
The company's core competencies and consulting services include assessment and compliance monitoring, programme management, health IT systems integration, data analytics, medical logistics, and pharmacy solutions. DLH has over 1,600 employees serving numerous government agencies.
Social and Scientific Systems, is a public health research organisation providing solutions in clinical and biomedical research, epidemiology and public health research, health policy, and programme evaluation.
KippsDeSanto and Co. served as financial advisor to DLH. Hogan Lovells US, LLP and Becker and Poliakoff LLP served as legal advisors to DLH as part of this transaction. The Avascent Group, Baker Tilly, and the Lockton Companies provided consulting services to DLH in connection with the acquisition.
Houlihan Lokey served as financial advisor to SSS; Saul Ewing Arnstein and Lehr, LLP served as legal advisor to SSS.
Date Published: 12/06/2019
Target: Social and Scientific Systems (SSS)
Country: USA
Deal Size: 70m (USD)
Sector: Healthcare
Type: Corporate acquisition
Financing: Cash
Status: Closed
Buyer: DLH Holdings Corp
Buyer Advisor: KippsDeSanto and Co, Hogan Lovells US, Becker and Poliakoff LLP