Home / News / Weekly Roundup Feb. 22 – Feb. 26 2016: GD’s Robotics Buy Keeps Tech M&A Wheels Turning & more

Weekly Roundup Feb. 22 – Feb. 26 2016: GD’s Robotics Buy Keeps Tech M&A Wheels Turning & more

Feb. 22 – Feb. 26 2016

A Note From Our President & Founder Jim Garrettson

Consolidation among the large players the government services market have been well-documented in spaces such as these but the product makers in GovCon also have been in on the M&A deal action over the past 14 months.

Lockheed Martin’s $9 billion purchase of helicopter maker Sikorsky was 2015’s largest transaction on the platforms and systems side of government contracting and a collection of other technology-related acquisitions also factored in the M&A landscape.

Video and surveillance systems, cybersecurity and secure communications were among the most notable target areas for GovCon’s technology makers that sought to add new products they believe can help boost operating margins and solidify their revenue bases.

This week, General Dynamics announced such a move through its acquisition of underwater drone maker Bluefin Robotics to combine the latter’s manufacturing capability with the former’s integration service work with the U.S. Navy.

In another example from last year, L-3 Communications contributed to GovCon services consolidation through its NSS divestiture earlier this year and also looked to add new footprints in the ISR and geospatial technology markets through its October 2015 purchase of ForceX.

For its part, San Diego-based Cubic has made a triple play of acquisitions in the C4ISR arena for almost $400 million with a view toward return and growth for its defense segment and our site ExecutiveBiz got an inside view of this strategy from CEO Brad Feldmann.

ExecutiveBiz recently spoke to Feldmann at the site of one of those acquired companies to learn why Cubic views C4ISR as an engine for growth, what defense customers are looking for in surveillance and communications technology and what has driven GovCon’s product makers to make targeted product-based acquisitions.

For more of Feldmann’s perspective on Cubic’s defense strategy and his view on the global government contracting market picture, please click here to read the full article.

THE WEEK’S TOP GOVCON STORIES

Army Taps 17 Firms for $5B IT Enterprise Solutions Successor Contract
The Army received 50 bids for the potential five-year ITES-3H vehicle that covers the supply of hardware, software and other technology products and services.
Diane Murray to Lead Deloitte’s Federal Civilian Sector
The 18-year firm veteran will take the role formerly held by Dan Helfrich, who became federal practice leader in January.
Reports: Boeing-Lockheed Team to Drop Protest of Air Force Bomber Contract Award to Northrop
Senate Armed Services Chairman John McCain is questioning the cost-plus method the Air Force is using for the Long Range Strike Bomber.
General Atomics to Buy Ducommun’s Aerospace, Defense Tech Services Business
The Huntsville, Alabama-based Miltec business will become a part of General Atomics’ electromagnetic systems group.
Leanne Caret Named President, CEO of Boeing Defense, Space & Security
Caret previously led the BDS segment’s global services and support unit and will start in the chief executive role on March 1.
Raytheon-Led Team Offers T-100 For Air Force T-X Program; CAE’s Gene Colabatistto Comments
The team including CAE, Finmeccanica and Honeywell is one of five in pursuit of the program to replace the T-38 trainer jet.
Tom Romeo on Agencies’ Citizen Experience Commercialization Efforts, LPTA Use in IT Acquisitions
Maximus’ federal business lead also offers an outlook on the role small businesses can play in GovCon in this Q&A with ExecutiveBiz.
CSC Picks Tysons II Office Center for New Virginia HQ
The global technology services contractor expects to complete the move in the spring coming off the heels of the U.S. government business separation.
Gen. Joseph Dunford: DoD’s Fiscal 2017 Budget Offers Path Forward on Readiness, Tech Programs
Dunford says the military’s $583 billion budget blueprint seeks balance in investments across high-end technologies and operational capacity.
James Comey: FBI 2017 Budget Request Includes $85M for Cyber Threat Investigations
The bureau’s director tells House lawmakers it needs the funds to identify potential threats and to share information with agency partners and the private sector.
Stephen Welby: At Least 200 Silicon Valley Firms Reached Out to DoD Innovation Hub
Welby, the Pentagon’s lead research and engineering lead, says discussions with businesses touched on areas such as advanced computing and big data.
Senate Approves Lisa Disbrow as Air Force Undersecretary
Disbrow will co-chair the Air Force Council and help oversee the branch’s $120 billion annual budget as its number-two ranked civilian.

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