Titan to Buy Technology Firm IDS

Titan Corp., the largest supplier of translators to the Army, agreed Thursday to buy closely held Intelligence Data Systems Inc. for $42.5 million in cash to add computing and data-analysis services.

The purchase may add to earnings this year, Titan said. The deal is expected to close in the second quarter.

San Diego-based Titan will add IDS’ data-mining, computing and information-processing technology to complement the secure computer networks and related support services it provides to the U.S. military and intelligence agencies. Reston, Va.-based IDS will become part of one of Titan’s existing units.

“IDS brings with it a wealth of dedicated, respected employees and new technologies that will enhance Titan’s position within the intelligence community marketplace,” Titan Chief Executive Gene Ray said.

Shares of Titan fell 34 cents to $17.47 on the New York Stock Exchange. The stock has fallen 10% in the last year.

This is Titan’s first acquisition since Lockheed Martin Corp., the largest Pentagon contractor, canceled its planned $1.66-billion purchase of the company in June. The deal was scuttled after Titan missed a deadline to resolve a Justice Department criminal investigation into allegations of bribery of foreign officials.

Titan agreed last month to pay $28.5 million after pleading guilty to bribery in the West African nation of Benin to promote a project.