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(Hampton, VA, November 10, 1998) Jack L. Ezzell, Jr., CEO
of Zel Technologies, LLC (ZelTech), announced today the successful acquisition
of SpaceTec Inc., a 14-year-old space, defense, and information technology
company located in Hampton, VA. Details of the private venture were not disclosed.
SpaceTec will become a division of Zel Technologies, with
Joseph C. Casas, founder and CEO of SpaceTec, as President of the division
and Vice President of Space Operations for ZelTech. The division will continue
to operate from its current offices adjacent to NASA Langley Research Center.
"We are very excited about this agreement. It brings
together two premiere small businesses and positions us strategically in a
growing market," says Mr. Ezzell. "The two companies complement
each other well.
ZelTech’s expertise in software and related IT services
in a variety of industries, coupled with SpaceTec’s engineering and technical
expertise in the space, defense, and commercial markets is a wonderful combination."
ZelTech was one of several companies vying for SpaceTec,
says Mr. Casas. "It was important to find an acquisition partner with
the same business culture, values, and philosophy more important than the
overall dollars."
"We beat out several large companies, and I would
encourage other small businesses to pursue similar opportunities. Deep pockets
aren’t always necessary," says Mr. Ezzell. "Strategically,
this is very good for ZelTech and SpaceTec. We are pleased an agreement could
be reached."
"When big companies merge, often there is a very large
bloodbath," says Mr. Casas. "Small businesses are different than
large businesses. The company is leaner and employees are working longer hours,
wearing many more hats. We do not anticipate any terminations. In fact, we
expect significant growth in the coming year."
According to recent analysis, the space business is projected
at being $122 billion in the year 2000, says Mr. Ezzell. "By joining
forces with SpaceTec, we expect our sales in this market to grow significantly.
SpaceTec holds six or seven National Space Act agreements. Leveraging technology
meaning using the experiences of one industry to move directly into another
one is something we do extremely well."
SpaceTec was founded in 1985 and has distinguished itself
as a provider of value-added services in support of three core markets space,
defense, and information technology. "Over the past few years, SpaceTec
has formed strategic alliances with a number of other businesses, including
United Space Alliance of Houston, Tex., and Marubeni Corporation of Japan,
to offer greater services and broader expertise. By partnering with ZelTech,
we are now more cost competitive and have a significantly greater comprehensiveness
of service. We expect to continue the existing strategic alliances, while
forging new ones in the coming months," says Casas.
Due to the increasing practice of bundling of contracts
by the Federal government, small businesses are finding it increasingly important
to form consortiums and strategic alliances, according to Mr. Ezzell. "Without
some type of alliance, small businesses can never get enough mass to compete."
SpaceTec has participated in many of America’s most
important science and technology programs, including missions to the moon
and Mars, Space Shuttle, the International Space Station, Mir, and Mission
to Planet Earth. Since 1994, SpaceTec has almost tripled in size, successfully
transitioning from 100 percent government dependency to 60 percent commercial
and 40 percent government work.
During the period of 1989 through May 1998 SpaceTec was
an SBA 8(A) company, which allowed them to become the prime contractor on
contracts with NASA Langley Research Center and other agencies. "Although
during that time we only had two 8(A) contracts, our 8(A) status really jump-started
our growth," says Mr. Casas. "Our credibility increased and it was
easier to branch out into other industries."
Joseph Casas has served for the past three years on the
Minority Business Resource Advisory Council for NASA, is a member of the board
of directors for the Hampton Roads Technology Council, and is vice chair,
appointed by the Governor, of the Virginia Commercial Space Flight Authority.
Zel Technologies, founded by Jack Ezzell, Jr. in 1988,
is one of the nation’s fastest growing technology firms, with revenue
increasing by 2815% since 1992, when the company employed four staffers. ZelTech
now has over 130 employees. The company is also a participant in the 8(A)
program until 2003, with a mere 12 percent of its revenues last year coming
from these contracts. Headquartered in Hampton, Va., ZelTech also has operations
in California, Colorado, Florida, Northern Virginia, and the Republic of Korea.
The company works with both government and commercial companies,
Mr. Ezzell says. "ZelTech provides its customers with value-added support
in four principal areas: needs definition, systems integration and engineering,
information management and knowledge development, and program management support,"
he says. "Our ability to integrate products and services in these areas
has enabled us to deliver comprehensive, on-target solutions to meet the needs
of a wide variety of clients. This acquisition gives us a foothold into the
commercial space market and vastly expands our ability to serve our defense
customers."
Jack Ezzell and Zel Technologies have won numerous awards
in the past couple of years including KPMG Peat Marwick High-Tech Entrepreneur
award (April 1998); 1998 SBA Small Business Person of the Year for the Commonwealth
of Virginia (March 1998); National Technical Association’s Small Technical
Business of the Year award (November 1997), and the Virginia Peninsula Chamber
of Commerce Small Business Person of the Year (September 1997).
Only one problem was encountered in the acquisition, says
Mr. Ezzell jokingly, "One of SpaceTec’s assets is on Mir right now,
so we couldn’t physically view it for the asset inventory!"
For more information about Zel Technologies, please contact
us as follows:
Zel Technologies LLC (ZelTech)
Attention: Corporate Affairs
54 Old Hampton Lane
Hampton, VA 23669
Telephone: (757) 722-5565
Fax: (757) 722-8516
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