Executive Mosaicâs Weekly GovCon Round-Up: Northrop Concludes Acquisition of Orbital ATKÂ and Top 10 Stories
Jim Garrettson, Executive Mosaic CEO
Northrop Concludes Acquisition of Orbital ATKÂ Â Â Â
This year has seen significant M&A activity, as evidenced by: the General Dynamics buyout of CSRA, completed in April, which folded CSRA under GD Information Technology; the creation of Perspecta from DXC Technologyâs U.S. public sector business, Vencore and KeyPoint Government Solutions, which began trading June 1st; and the Northrop Grumman purchase of Orbital ATK, which concluded Wednesday.
Iâd like to take a moment to highlight Wash100 winners involved in those first two deals: the chairman and chief executive officer of GD, Phebe Novakovic, is a four-time winner; the president of GDIT, Amy Gilliland, is a 2018 Wash100 winner; the former president and CEO of CSRA, Lawrence Prior, is a four-time winner; the CEO of Perspecta, Mac Curtis, is a five-time winner; the chief operating officer of Perspecta, Marilyn Crouther, is a four-time winner; and Ramzi Musallam, CEO and managing partner at Veritas Capital, and a Perspecta board member, is a three-time winner.
Since weâve covered both the GDIT-CSRA deal and the Perspecta spinoff in depth, here and in our publications, Iâd like to highlight the Orbital ATK purchase timeline.
In September, GovConWire reported that Northrop had agreed to buy Orbital ATK for $9.2 billion, in a move to boost innovation and expand technology offerings. The deal stipulated that Northrop would pay $7.8 billion in cash and assume $1.4 billion in net debt from the Dulles, Va., aerospace and defense contractor. Northrop announced that it would fold Orbital ATK into a fourth business sector when the deal finalized.  In the announcement, Wes Bush, Northropâs chairman, CEO and president, and a four-time Wash100 winner, said both companies aim to facilitate competition in critical security domains and broaden capabilities in support of clientsâ requirements as well as yield value creation through the combination of both firmsâ portfolios and âtechnology-focused cultures.â
David Thompson, president and CEO of Orbital ATK, and a 2017 Wash100 winner, commented that the transaction would help Orbital ATK seek new opportunities, maintain strong performance on current programs and provide employee career opportunities.
Then, Orbital ATKâs shareholders approved the acquisition in November. Two months later, Kathy Warden, president and COO at Northrop, and a three-time Wash100 winner, told analysts that Blake Larson, COO of Orbital ATK, who brings over three decades of management experience, will lead the future Northrop Grumman Innovation Systems business. On June 5th, Northrop announced that the Federal Trade Commission had given it antitrust approval to proceed with the deal, paving the way for its closure. As part of the clearance, the FTC stipulated that Northrop must make solid-rocket motors available to competitors on âa non-discriminatory basis,â and establish a firewall between the SRM business and other operations.
This week, Northrop also released updated financial guidance for the year, reflecting projected results including Orbital ATK. The company now projects a cash flow of between $2.3 and $2.6 billion, with approximately $30 billion in sales for 2018.
THIS WEEKâS TOP 10Â NEWS STORIES
Weekly Contract Awards This week’s top GovCon contract awards: Lockheed Martin, Pond-Woolpert JV, Serco, General Dynamics and Deloitte, among others.
Curtis, a 2018 Wash100 awardee and most recently president and CEO of Vencore, noted in May that Perspecta aims to position itself in the government IT services market using its applied research work as a key differentiator.
Report: Kelly Ferrell Named General Dynamics IT Business Chief Growth Officer
Kelly Ferrell, formerly general manager of intelligence division at General Dynamicsâ information technology business, has been promoted to senior vice president and chief growth officer at GDIT, the Washington Business Journal reported Monday.
DLT Lands $379M IDIQ Award for Oracle Software Product Licenses
The Department of the Navy has awarded DLT Solutions a potential $379.3 million indefinite-delivery/indefinite-quantity contract for Oracle software brand licenses, according to a FedBizOpps notice posted Thursday.
Lt. Gen. Austin Miller, commander of the Joint Special Operations Command, has been promoted to the rank of general and assigned to lead the Resolute Support Mission of NATO and the U.S. Forces-Afghanistan.
The Department of Defense and the General Services Administration have awarded General Dynamics Information Technology (NYSE: GD) a potential 10-year, $7.6 billion blanket purchase agreement to replace legacy DoD IT office applications with a standard cloud-based platform across the U.S. military.
Amazonâs decision to establish new headquarters in Northern Virginia and New York is expected to help create up to 37,850 jobs by 2034, the Washington Business Journal reports. Over the next two years alone, the tech giant plans to to hire 1,200 people in the Greater Washington area to work in Crystal City, Va. The