Herndon-based GTSI Corp. (NASDAQ: GTSI) has decided to sell interest in Eyak Technology LLC.
GTSI -- a government contractor -- said that it had entered into a Settlement and Redemption agreement with The Eyak Corporation, Global Technology Group, LLC and EyakTek, August 19, 2011 to sell remaining interest in Eyak Technology LLC which will end litigation and arbitration proceedings between parties as well as other owners invloved.
"Our Board of Directors believed the timing was right for GTSI to liquidate this investment based on the terms of the Settlement, and to resolve all disputes with EyakTek and its owners. As a result of this settlement, we will have the opportunity to redeploy this capital by investing in more critical areas of the business. We believe this decision is in the best interest of GTSI and its shareholders, and will contribute to our alignment for growth," stated Sterling Phillips, GTSI's Chief Executive Officer and President
GTSI corp will receive $20 Million in cash from the sale of ownership in Eyak Technology LLC which was 37% of the company.
GTSI corp was started in 1983 and has over 1,700 government clients served by more than 400 employees. The company had revenue of $666.7 Million for 2010.