Randy Phillips, head of corporate development at Leidos (NYSE: LDOS), said the company is looking at several acquisition targets and he believes mergers and acquisitions won’t slow down for GovCon firms, the Washington Business Journal reported Friday.
“We’re all still looking for growth. We all want to focus on organic growth,” Phillips said at an event Friday. “I don’t see any exogenous forces, other than debt or whatever insanity might happen with the economy. It’s hard to tell.”
He noted that the company could be eyeing a product and services business to broaden its market base and that growth through acquisitions continues to account for more than half of Leidos’ goals in the next five years provided that it offers a balance between scale transactions and scope deals.
Phillips, who joined Leidos in August, cited that favorable multiples analysis and low interest rates are some of the market conditions that continue to make M&As an easy alternative for large contractors seeking to acquire new technologies and services.