A Note From Our President & Founder Jim Garrettson
Two of the country’s 25 largest government contractors announced a transaction this week long anticipated by market observers as one of many in the sector’s ongoing shift in composition.
CACI International, ranked 25th on Bloomberg Government’s fiscal year 2014 report, will purchase the government services segment of L-3 Communications for $550 million in a deal the companies expect to close by March of next year.
L-3, listed 8th on that “BGOV 200†study, views the sale as an opportunity to gain more focus on its defense technology portfolio and meets its stated goal to spin or sell the services segment by the year’s end.
On the buyer’s side, CACI sees an opportunity to further grow its presence in the intelligence and national security community as CEO Ken Asbury described to investors in a subsequent call to discuss the deal.
Asbury described to analysts a government services market he views as having more stability now compared to the previous few years.
“We’re seeing the market has settled to a certain set of rates for those of us out of manufacturing environments so it’s easier for us to adjust. The phenomenon we’re seeing in market place is pure-play companies in our space are showing the ability to overcome budget difficulties and see modest growth.”
Wall Street seems to view the contracting sector now as having the kind of stability Asbury described as ourGovCon Index has shown a double-digit recovery in the fourth quarter from a sluggish July-September.
To date, the Index has shown a rally of almost 13 percent from its Sept. 30 close to completely reverse its third-quarter decline of 5 percent and as discussed here previously, investors appear to anticipate more activity in the defense-GovCon sector with the global terrorism environment garnering more attention.
The U.S. Air Force has awarded General Atomics’ aeronautical systems business a potential $173.5 million contract to perform capability upgrades to four MQ-9A Reaper unmanned aerial vehicles and two ground control stations. The sole-source contract involves foreign military sales to the Netherlands and includes the delivery of spares, support equipment and upgrade kits, the Department
Alec Gordon, a former managing director within General Atomics‘ electromagnetic systems group, has been promoted to vice president and chief operating officer at GA-EMS. Gordon, who has been interim COO since May 2023, will help pursue business opportunities and advance operational resources for the company’s product lines, including the electromagnetic aircraft launch system, satellites and
David Levy, an aerospace and defense executive, has been named chief revenue officer at DZYNE Technologies, an unmanned autonomous systems developer. He succeeds Christopher Miller, who has served as interim CRO but will stay with DZYNE as chief of strategic pursuits and board member, the company said Tuesday. As CRO, Levy will oversee revenue operations
