Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Tim Quillin of Stephens, Inc.
Timothy Quillin – Stephens, Inc.
I got the revenue figures or expected revenue from ERA and ICS but could you run through your margin expectations for those two businesses and also your cash outlays for those and what your cash balance is now?
Stanton D. Sloane
As I think we said in the script, we expect revenues from ERA to be $65 million or greater, from ICS about $8 million. From a margin perspective, we would expect in the short term and more so in the long term, for ERA to have much higher margins than we currently have. ICS would operate at about the same level that we do right now, so the net effect is a blend up of operating margins. I think your third question had to do with the price and the way we’d look at that is that we typically don’t disclose the price of acquisitions unless they pass the SEC threshold, but to give you a little insight into it, we paid about somewhere in the 13 to 14 times the calendar year of 2008 EBITDA figure.
Timothy Quillin – Stephens, Inc.
For both of those?
Stanton D. Sloane
For ERA and probably on the ICS, Barry, do you have that figure?
Barry S. Landew
Somewhat less, closer to 10 times on ICS.
Timothy Quillin – Stephens, Inc.
And can you give us the cash balance right now?
Stephen C. Hughes
Yes, Tim, I can. We have outstanding... You mean as of today?
Timothy Quillin – Stephens, Inc.
As of today.
Stephen C. Hughes
We have on the balance sheet about $70 million of cash with about $200 million of debt. We would anticipate that by the end of the year that debt number would be and the cash number would be at about a net somewhere in the $10 million to $20 million range, so we have liquidity of $285 million in our current line of credit, with significant additional liquidity available.
Timothy Quillin – Stephens, Inc.
And just finally could you help us out with expected D&A for the year including the intangibles amortization from those two?
Stephen C. Hughes
Approximately 1.7% give or take.
Operator
Your next question comes from Michael Lewis with BB&T Capital Market.
Michael Lewis - BB&T Capital Markets
Tim actually got the ERA question for me, but I was wondering if Barry could answer what he’s seeing in the M&A market with regard to differentials in transaction valuations between the hot areas like cyber security, DHS, health care, IT. Could you walk us through some of the multiples that you’re seeing out there and how you would suggest these multiples will play out over say the next 12 to 18 months. Will they go up, come down, stay stable?
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