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Friday, September 03, 2010

UPDATE: Intergraph issued further guidance on the new Intergraph Government Solutions Division…

In compliance with U.S. government requirements, we are in the process of creating a new, independent subsidiary that will contain all of Intergraph’s classified businesses:  Defense & Intelligence; Federal Solutions and Intergraph Services Corp.  This new company will be called Intergraph Government Solutions Corporation (IGS).  As required by law, IGS will be controlled and overseen by a special proxy board consisting of three or more outside and fully independent directors who hold security clearances with the U.S. government.  These directors are required to be independent of Intergraph and Hexagon with no prior affiliation to either party and likewise must be approved by the U.S. Defense Security Service (DSS).  We have identified these Directors and submitted them for approval as part of our comprehensive DSS filing.  All of the proposed Directors are well known, high profile people that have extensive experience and relationships within the U.S. government, Department of Defense or the U.S. intelligence community.  Upon closing, we will immediately announce the names of the board members. Jack Pellicci will lead this group and report to this board.

—- original post 9/1/10——

After the acquisition of Intergraph by Hexagon AB, Intergraph’s Federal Division will be run by a proxy board. Though owned by Hexagon, the new Intergraph division will be essentially autonomous. Intergraph VP Jack Pellicci is likely to head the new division. The new division is the result of the need for a foreign company to remain operationally “hands off” of any work completed for U.S. security agencies where Intergraph has a substantial portfolio of projects. The new division will report to a board approved by the U.S. government. The new division chief reports to this board not to Hexagon top management. In essence, the new division will report revenues to Hexagon but all division administrative functions are run independently.

According to Intergraph statements: Since Hexagon is headquartered outside of the United States, Hexagon plans to comply with US regulations and establish an independent subsidiary for Intergraph’s federal and classified business, controlled by a U.S. approved special proxy board of outside directors controlling all operations of the business. The appointed directors are required to be independent of Intergraph and Hexagon with no prior affiliation to either party and must be approved by the Defense Security Service (DSS).These directors are all well known, very experienced people who have deep experience and relationships with the US Defense Department. We view these relationships will be helpful as we grow our business in the years ahead.

by Joe Francica on 09/03 at 06:08 AM | Comments | Bookmark and Share
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