Summary:
On April 30,2008, SRA International Inc. (NYSE: SRX), announced plans to acquire Era Corporation, a privately held Reston-based company that specializes in advanced technologies for air traffic management, airport operations, military, and security markets. Financial terms of the transaction were not disclosed.

INPUT's Take:
SRA gains a prime contract to grow its footprint in a key civilian agency – NASA. In FY07, SRA had under $2 million in prime obligations from NASA contracts (source: INPUT FPDS Vendor Profiles). The Era acquisition adds a position on the NASA's Flight Critical Systems Research (FCSR) contract. While Era has won less than $1million in task order awards since the contract's start in FY06, SRA has a ceiling of $35 million to work with and thus lots of upside potential. Over half of Era’s FY07 prime dollars come from that NASA contract.

With a small percentage of Era's revenue coming from federal prime contracts (source: INPUT and FPDS), SRA is also gaining customers outside of its federal sweet spot in its march towards the goal of $5 billion by 2012. Era prime contract obligations have decreased over the last few years from $1.4 million in FY01 to $0.5 million in FY07.

SRA International’s last acquisition was completed on August 9, 2007, with the purchase of the Constella Group, a Durham, NC, based company specializing in global health consulting services.

More Details of the Transaction: company press release