Raytheon Co. is acquiring two companies to strengthen its portfolio of integrated communications technologies in the first acquisitions the company has made in four years.
Government mergers and acquisition adviser Quarterdeck Investment Partners LLC has been acquired by Jefferies Group Inc., an investment banking firm.<br>
Dynamics Research Corp. is acquiring Andrulis Corp., an Arlington, Va., provider of information technology and engineering services to government customers in a $26 million deal.<br>
In a move that will expand its work with the federal government, Computer Sciences Corp. is buying DynCorp, an employee-owned information technology and outsourcing company. DynCorp's chief calls it "a perfect match."<br>
The purchase of TRW Inc. by Northrop Grumman Corp. is a "capstone acquisition," the CEO says, and most likely signals an end to the company's aggressive purchasing streak.<br>
In a move that will expand its work with the federal government, Computer Sciences Corp. is buying DynCorp, an employee-owned information technology and outsourcing company.<br>
Northrop Grumman Corp. has reached agreement with the Justice Department on terms of a consent decree that should allow the company to soon close its $7.8 billion acquisition of TRW Inc.<br>
<FONT SIZE=2>Although their company boasted nearly $1 billion in annual revenue from commercial customers, executives at Perot Systems Corp. knew it would be difficult to build a government business from scratch. Companies trying to crack the federal market can expend considerable resources developing the right contacts, establishing customer relationships and getting the right clearances and procurement vehicles -- all of which can take a lot of time with no guarantee of success.</FONT>
Science Applications International Corp. has sold a suite of decision support products to Idea Sciences Inc. SAIC originally acquired the technology through its 2000 purchase of Leadership 2000 Inc.
The increasing pace of acquisitions in the government information technology market is approaching a feeding frenzy, according to investment bankers. Rick Knop of Windsor Group said his investment bank has seven deals in the closing stages among companies in the government IT space. And during 2001, Bill Loomis of Legg Mason Wood Walker Inc., said he tracked 15 mergers and acquisitions. So far in 2002, there have been 30.
Northrop Grumman's acquisition of TRW remains on track after the 30-day antitrust waiting period imposed by the Justice Department ended at midnight the day before.
Merger and acquisition activity<FONT SIZE=2> in the government IT sector has increased significantly in the first nine months of 2002. Measured by the 79 transactions in this industry sector in the 12 months ended Sept. 30, this recent pace is a 44 percent increase over the 55 M&A deals announced in 2001. This pace is nearly equal to the 78 transactions announced in 2000, and about 20 percent above the average annual rate of 64 deals during 1998 to 2000.</FONT>
TeleCommunication Systems Inc. has acquired the assets of Open Telephone Network Inc., the Annapolis, Md.-based company announced Oct. 2. Open Telephone Network Inc. of Berkeley, Calif., which goes by the name Otelnet, is a privately held provider of real-time and on-demand intelligent notifications and alerting solutions for the wireless industry.
DigitalNet Inc. is acquiring Getronics Government Solutions, the U.S. subsidiary of the Dutch company Getronics NV. The purchase is expected to be complete in November.
