Lockheed to buy OAO
- By Judi Hasson
- Oct 28, 2001
Lockheed Martin Technology Services announced Friday that it is acquiring OAO Corp., a Greenbelt, Md., information technology company that provides solutions to the federal government. The terms of the agreement were not disclosed.
Lockheed Martin Technology Services will combine one of its companies, Lockheed Martin Information Support Services, with OAO, to create a new company to serve the federal IT market. Linda Gooden, currently president of Information Support Services, will lead the new company.
"This acquisition is an excellent strategic fit with our Information Support Services business," said Michael Camardo, executive vice president of Lockheed Martin Technology Services.
OAO is likely to provide Lockheed Martin with the ability to "expand its customer base to higher end technical services," said Ray Bjorklund, vice president of consulting at Federal Sources Inc. "OAO has a lot of really good competencies in technical services and great relations with NASA and [the National Security Agency]," he added.
In 2000, Lockheed Martin Technology Services had sales of more than $2 billion, and OAO, a privately held company, had more than $200 million in revenues. More than 90 percent of OAO's business is in the government market.
Larry Allen, executive director of the Coalition for Government Procurement, a Washington, D.C., industry group, said OAO has some "very good relationships in very key places.
"OAO is very politically connected. Lockheed will be able to leverage those [relationships]," he said.