General Dynamics to buy Anteon

General Dynamics has agreed to purchase Anteon in a $2.2 billion transaction that officials at both companies said will create a top-tier integrator.

General Dynamics plans to offer $55.50 in cash for each outstanding share of Anteon. The companies expect the deal to close by the end of the second quarter of 2006. The deal is subject to the approval of Anteon shareholders and review under Hart-Scott-Rodino antitrust rules.

Joseph Kampf, Anteon’s president and chief executive officer, said the pending deal fulfills the company’s objective of becoming a tier-one player in the federal services market. He said that tier features companies such as Computer Sciences Corp., Lockheed Martin, Northrop Grumman and Science Applications International Corp. Anteon had revenue of $1.3 billion in 2004.

“Together, we will be able to look at those companies right in the eye,” Kampf said, speaking at a teleconference today. He said the combined companies will be able to bid for larger opportunities in the federal services arena.

Officials cited synergies between Anteon and General Dynamics’ Information Systems and Technology group. The group, which generated $6.8 billion in revenue in 2004, provides information technology infrastructure services, network integration, and command, control, communications, computing, intelligence, surveillance and reconnaissance solutions.

“We see these organizations as highly complementary to each other,” said Gerald DeMuro, executive vice president of Information Systems and Technology. He said the group has strength in enterprise IT infrastructure, while Anteon offers skills in areas such as enterprise architecture, network design, modeling and simulation, and outsourcing.

He also cited Anteon’s concentration on customers in the Defense and Homeland Security departments and the intelligence community, areas that General Dynamics considers core markets.

Kampf said he expects the companies’ combined resources to help in the pursuit of contracts such as the General Services Administration’s Alliant pact. “Alliant will provide a platform for us to grow together,” he said.

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