Home / Financial Report / PwC: Aerospace, Defense Sector Recorded $5.9B in Q3 2018 M&A Deal Value

PwC: Aerospace, Defense Sector Recorded $5.9B in Q3 2018 M&A Deal Value

A new PwC report says the total value of mergers and acquisitions in the global aerospace and defense industry was $5.9B in the third quarter of 2018, down 49 percent from the same period last year.

PwC said the number of M&A deals in the A&D sector plummeted 18 percent to 89 transactions in Q3 2018 and the average deal size was $197.1M, which reflects a 41 percent drop from the prior year’s third quarter.

The announcement of Boeing (NYSE: BA) and Embraer in July to form a commercial aviation-focused joint venture in which the Chicago-based defense contractor will own 80 percent of the business accounted for approximately 67 percent of the total deal value, making it the largest transaction in Q3 2018.

Bob Long, U.S. aerospace and defense deals leader at PwC, said rising government spending, competition and emerging technologies as well as macro trends are expected to boost M&A activity for the rest of the year and 2019.

Those emerging technologies include cloud, cybersecurity and command, control, communications, computer, intelligence, surveillance and reconnaissance, according to the report.

Check Also

Leidos Wins Navy Synthetic Signature Generation Trainer Contract

Leidos (NYSE: LDOS) has won a potential three-year, $63M contract to develop, engineer and integrate a training system based on synthetic signature generation technology for the U.S. Navy. The company will also help the service brancg test, implement and maintain the SSG trainer as part of the cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract, the Department of Defense said Tuesday.

Bechtel Wins $383M Contract to Design, Build NASA’s Second Mobile Launcher

Bechtel has been awarded a 44-month, $383M contract to design, construct, test and commission a second mobile launcher at NASA's Kennedy Space Center. NASA said Wednesday it will use the ML2 to assemble, process and launch the Space Launch System rocket with the Orion spacecraft on missions moon and Mars. The platform will be built to support KSC's exploration ground systems.