Large Defense Contractor Purchases Inc. 500 Company
May 10, 2005--With the recent sale of his Inc. 500 company, CEO and founder Mike Canney now has his eyes set on building another Inc. 500 company--but not before he has a little fun.
Titan National Security Systems, a 12,000-employee, defense contracting juggernaut with $2 billion in revenue, acquired Canney's Intelligence Data Systems (IDS) for $42.5 million in cash.
"We're extremely excited about having IDS join the Titan family," Gene Ray, Titan's president and CEO said. "IDS brings with it a wealth of dedicated, respected employees and new technologies that will enhance Titan's position within the intelligence community."
Canney, also owner of a vineyard, an engineering consulting firm, and a racing team, founded IDS in 1997 and built the company into a $26.5 million dollar company, landing it at #88 on the 2004 Inc. 500 list.
"I actually got offered more money for IDS from another company, but Titan was the clear-cut option for me, and more importantly, the employees," Canney said. "Making the Inc. 500 list really opened the flood gates as far as people contacting me about purchasing IDS."
Canney now has his eyes set on the horizon, where he plans to start another defense contracting firm, but this time, he is looking forward to fewer sleepless nights than he had when starting IDS.
"This time I have cash available, so I won't have to mortgage my house, and I have a well of contacts and a solid network, as well as more than eight years of experience. Things should be a lot smoother this time. If nothing, I'll sleep better, I can tell you that."
Currently, Canney is staying on with Titan as the vice president of advanced intelligence programs but mentions that racing for his team, Mike Canney Motorsports, is now his full-time passion. He also has a harvest of grapes to tend to, the expansion of his engineering firm to foster, and, most importantly to him, a brand new engine (which he bought with a small portion of the IDS proceeds) to break in on a full schedule of car racing before September, when he'll compete for a national title.
"I have seven more races this year, and I'll be faster than I ever have been," Canney said. "I'm very excited about having the chance to race full time."