PSI bought for $42 million

, the US-based engineering and technology development company which is part of

, is acquiring

(PSI) for $42 million.

PSI, which has 350 employees, is a diversified high technology company based in Reston, Virginia. Founded in 1972, PSI provides applied science and systems engineering expertise; information technology applications and solutions; and custom products to the federal government and commercial clients. PSI's revenues for fiscal year 2004 were $44.6 million.

According to a statement, the acquisition is designed to accelerate Foster-Miller's growth in the commercial, defence, security and transportation markets, and will offer wider business development opportunities for other parts of the QinetiQ group, both in North America and in the UK.

Under the terms of the agreement, PSI will maintain its name and operate as a wholly-owned subsidiary of Foster-Miller. The acquisition by Foster-Miller brings the total employee base to 675 and increases the company's presence to locations in fourteen US states.