IBM To Acquire National Interest Security Company, LLC

Enhances IBM’s Strategic Offerings in Government, Healthcare and Energy Markets

Armonk, NY - 20 Jan 2010. IBM (NYSE: IBM) today announced it has signed a definitive agreement to acquire National Interest Security Company, LLC (NISC) to further strengthen IBM’s ability to deliver advanced analytics and IT solutions to the public sector.  NISC, a privately-held company headquartered in Fairfax, Virginia, offers a full range of services and solutions in the areas of defense, healthcare, energy, logistics and security.  Financial details were not disclosed.

NISC’s strategy and operational solutions help government agencies improve operations and create new, forward-looking capabilities.  The combined offerings will enable IBM to expand its capabilities with federal, state and local government entities, particularly in the fast-growing areas of defense, healthcare, energy, logistics and security.

"IBM's analytic and innovation prowess, combined with NISC's industry knowledge and depth of experience in defense, healthcare, energy, and infrastructure management services, will allow us to deliver an unprecedented level of service and support to our growing list of government clients," said Chuck Prow, managing partner, public sector, IBM Global Business Services.

NISC’s deep federal expertise will complement IBM’s existing public sector offerings and the recently launched Business Analytics and Optimization (BAO) Services for Public Sector.  IBM’s public sector BAO team works with government agencies utilizing advanced analytics to transform ordinary data into predictive intelligence, helping agencies improve the speed and quality of their decision making.

NISC’s expertise includes systems engineering, biometrics, document and media exploitation, systems integration, software development, enterprise architecture, security, information assurance, analysis support and critical infrastructure protection.

“In building NISC we had two primary objectives; to provide our customers with the highest quality, effective solutions and to provide our employees with the opportunity to do meaningful work with multiple paths for professional development,” said Thomas J. Campbell, Chairman of NISC. “NISC’s unique capabilities, long standing customer relationships, exceptional employees, and differentiated solutions will be a strong fit with IBM.”

“NISC’s high-end, differentiated approach combined with IBM’s Analytics Center will help federal agencies improve current mission effectiveness and create new capabilities,” said Andrew Maner, Chief Executive Officer of NISC.  “We look forward to contributing to its BAO services unit and believe IBM’s world-class technology resources will significantly enhance our ability to dramatically impact the performance of our customers.”

NISC’s experts integrate domain knowledge and quantitative methods with technology to deliver a range of services, from high-end strategy development to strategic program support. Additionally, NISC’s information solutions utilize state-of-the-art information management technology and facilities, and a highly-skilled workforce, to deliver a full spectrum of customized analytics, security and information management solutions.

The agreement includes the acquisition of Technology and Management Services, Inc., an NISC affiliate. The deal is subject to customary closing conditions, including regulatory reviews. At the completion of the transaction, which is expected in the first quarter of 2010, NISC will be integrated into IBM’s Global Business Services consulting unit.

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