February 5, 2016 - M&A

New Year, New Acquisitions

M&AFrom mid-holiday to post-Snowzilla, the government contractor space has seen acquisition activity across sectors, geographies, and sizes. Here are some highlights from in and around January:

The Biggest: With its planned acquisition of Lockheed Martin’s (NYSE: LMT) Information Systems & Global Solutions (IS&GS) business segment, announced on January 26, Leidos Holdings, Inc. (NYSE: LDOS), is poised to become one of the largest providers of government services. The $5 billion transaction is expected to close in the second half of 2016. (More here and here.)

Two in One Day: Cubic Corporation (NYSE: CUB) announced two acquisitions on December 21. TeraLogics, a leading provider of real-time full-motion video processing, exploitation, and dissemination (PED) for the Department of Defense, was purchased for $39 million. On the same day, Cubic announced it had entered into a definitive purchase agreement with GATR Technologies, a manufacturer of next-generation deployable satellite communication terminal solutions, for a price of $232.5 million. The transaction with GATR closed on February 3. (More here and here.)

Coast to Coast to Coast: California-based FireEye (NASDAQ: FEYE) also announced two acquisitions. First was the acquisition of iSight Partners, a Dallas, Texas-based government contractor that specializes in threat intelligence collection and information organization. The purchase price was $200 million and the deal closed on January 14. (More here.) Then on February 1, FireEye announced another deal, this time in the threat management space, closing the acquisition of Invotas International Corporation, based in Alexandria, Virginia. (More here.)

Trading Hands: While most of the announced deals we’ve listed have involved strategic buyers, at least one private equity firm now counts a government contractor among its portfolio companies. On January 19, Platinum Equity announced it would acquire PAE, a provider of global logistics and stability operations, technical services, and national security solutions to customers on all seven continents. Prior PAE owner Lindsay Goldberg focuses on partnering with family-owned and entrepreneur-led businesses, and Platinum Equity specializes in mergers, acquisitions, and operations. The transaction is expected to close in February. (More here.)

That wraps up this latest highlight reel, and our congratulations go out to all parties involved.