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| David Luxton, president and CEO of Allen-Vanguard. (Darren Brown, OBJ) |
Allen-Vanguard Corp. has signed two-year agreements with Science Applications International Corp., a partnership which could help Ottawa-based Allen-Vanguard gain a stronger foothold in the U.S. defence market.
Allen-Vanguard said it would be working with the San Diego-based company to jointly develop chemical, biological, radiological, nuclear and explosive (CBRNE) defence technologies and training solutions for the North American market, with the potential to gain sales in international markets.
"SAIC is a significant participant in large U.S. Department of Defense CBRNE hardware and logistics programs and will be a strong and credible integration teammate. We expect that SAIC can substantially improve our positioning in large programs in the U.S. and Canada," said Allen-Vanguard CEO David Luxton in a statement. "The agreements with SAIC will also help strengthen our market channels with the U.S. government for our broad line of counter-IED (improvised explosive devices) and CBRNE products and services."
"Allen-Vanguard has delivered on one promise this morning: a partnership with a Fortune 500 company for CBRNE product distribution," wrote Versant Partners analyst Linsdell in a note Tuesday morning.
Mr. Linsdell pointed out that the announcement didn't include any dollar values, only a promise that the company will reap the benefits over the next 12 to 18 months, but wrote that it still looked like a good partnership based on SAIC's performance.
SAIC has approximately 44,000 employees who serve customers in the U.S. Department of Defense, the intelligence community, the U.S. Department of Homeland Security, other U.S. government civil agencies and selected commercial markets, with annual revenues of $8.9 billion for its fiscal year ended Jan. 31, 2008. It also has deployments of its CBRNE protection capabilities at 35 U.S. military installations.
The news prompted a 12.7-per-cent gain in Allen-Vanguard's stock on the Toronto Stock Exchange at 11:08 a.m., to $2.93.
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