GovCon Wire’s October M&A Activity Recap: Active Tech Sector, One Big Spinoff

The technology sector was one to watch in October’s merger and acquisition landscape, and a dominant player in the government contracting industry completed a significant transformation.

GovCon Wire recorded 10 acquisitions in October and the first week of November, up from the eight we covered in September.

Acquisitions

IBM (NYSE: IBM) looked to expand its big data analytics software offerings by acquiring intelligence analytics firm i2 Group, which IBM says will help law enforcement officials combat security threats.

IBM also agreed to buy product development firm Platform Computing in a move designed to better serve enterprise clients, reduce costs and improve data management with technical computing.

PAE completed its purchase of former Lockheed Martin-Day & Zimmermann joint venture Defense Support Services LLC, a provider of military aircraft and vehicle maintenance, logistics and base support services.

Parsons Corp. plans to integrate missile provider Cobham Analytic Solutions, or Sparta Inc., and its subsidiaries into its engineering business through a $350 million cash transaction.

Neustar added a third business segment by completing its acquisition of Targus Information Corp., or TARGUSinfo, which provides real-time, on-demand information services such as Caller ID.

CRGT Inc. closed its purchase of application development firm Johnston McLamb to extend its service offerings and solutions for enterprise-level and mission-critical systems, some of its core business.

HP (NYSE: HPQ) acquired control of enterprise software firm Autonomy Corporation plc., which will operate as a separate business unit and bring 25, 000 new customer accounts.

General Dynamics (NYSE: GD) imprinted itself deeper into the ship repair sector by closing its acquisition of Metro Machine Corp., now part of General Dynamics’ San Diego-based NASSCO division.

General Dynamics also agreed to buy blast- and mine-protected vehicle manufacturer Force Protection in an approximately $360 million transaction, an addition to the company’s land systems business unit.

ITT Corp. (NYSE: ITT) extended its reach in the Australian oil, gas and mining industries through its acquisition of one of its longest-serving distributors, Blakers Pump Engineers.

Spinoffs

ITT also completed its separation plan, spinning off its defense and information solution business into ITT Exelis (NYSE: XLS) and its water technology and services business into Xylem (NYSE: XYL).

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