Mergers, acquisitions important to contractors, report states

Mergers and acquisitions, an increasingly important part of federal contracting strategies, continued at a robust pace in 2005, according to a report Input released yesterday.

Input tracked 118 such transactions and discovered that:

  • More than half of them -- 63 deals, or 53 percent -- involved buyers making multiple acquisitions. General Dynamics, L-3 Communications and Lockheed Martin each had five or more acquisitions, putting them at the top of the list. Other companies making multiple acquisitions included CACI International, DRS Technologies, ChoicePoint, EDO, MTC Technologies, Northrop Grumman, QinetiQ, Science Applications International Corp., SRA International and Veritas Capital.

  • About two-thirds of the 2005 mergers and acquisitions involved the security and defense markets. Military communications, sensors and signal processing technologies were areas of particular focus.

  • Several vendors who bought firms early in 2005 became sellers later in the year.

  • More buyers and sellers are smaller companies. In the 85 transactions Input analyzed for which seller revenue figures were available, two-thirds of the sellers had annual revenues of less than $40 million. Of 20 buyers that logged multiple acquisitions in 2005, six reported revenue of less than $300 million.

Featured

  • People
    Federal CIO Suzette Kent

    Federal CIO Kent to exit in July

    During her tenure, Suzette Kent pushed on policies including Trusted Internet Connection, identity management and the creation of the Chief Data Officers Council

  • Defense
    Essye Miller, Director at Defense Information Management, speaks during the Breaking the Gender Barrier panel at the Air Space, Cyber Conference in National Harbor, Md., Sept. 19, 2017. (U.S. Air Force photo/Staff Sgt. Chad Trujillo)

    Essye Miller: The exit interview

    Essye Miller, DOD's outgoing principal deputy CIO, talks about COVID, the state of the tech workforce and the hard conversations DOD has to have to prepare personnel for the future.

Stay Connected

FCW INSIDER

Sign up for our newsletter.

I agree to this site's Privacy Policy.