Cybersecurity and electronic warfare services provider Castellum has closed its acquisition of Global Technologies Management Resources, a $10 million revenue contractor in close proximity to Naval Air Station Patuxent River.
This transaction is immediately accretive on a revenue per share, recurring cash operating profit per share and net income per share basis to Castellum, the Bethesda, Maryland-headquartered company announced on Monday.
“In addition to adding significant new capability to Castellum, strengthening our presence at Pax River and being immediately accretive for our shareholders, we also have a new, important prime contract vehicle through which we plan to accelerate our organic growth,” said Castellum President and CEO Mark Fuller.
He said that Jim Morton, who currently serves as CEO of GTMR, is an “excellent addition” to Castellum’s leadership team and that the addition of GTMR’s staff will expand the organization’s workforce as it scales.
With the purchase of GTMR, Castellum’s revenue run rate is now over $50 million. Under SEC Rule 3-05 of Regulation S-X, GTMR’s 2022 financials are being audited as a significant transaction. The process is expected to conclude within 60 days.
The acquisition was designed to be a “tax-free” reorganization under Section 368 of the Internal Revenue Code with slightly more than 80 percent of the consideration in the form of Castellum restricted common stock.
“We look forward to fully integrating GTMR into Castellum. We now shift our focus to closing our other pending non-binding LOI, which we expect to do within the next 10-20 days, as well as looking for our next acquisition,” said Fuller.
Prior to this purchase, Castellum completed the acquisition of Lexington Solutions Group in April 2022, which deepened the former’s portfolio of information warfare/information operations offerings.