Lockheed, Northrop Cast for New Deals
Lockheed, Northrop Cast for New Deals By Bob Starzynski Staff Writer Executives from Lockheed Martin Corp. and Northrop Grumman Corp. are on the prowl for information technology acquisitions after their failed union, but the two companies won't be fishing the same waters, analysts said. Arthur Johnson "Northrop has mo
Lockheed, Northrop Cast for New Deals By Bob Starzynski Executives from Lockheed Martin Corp. and Northrop Grumman Corp. are on the prowl for information technology acquisitions after their failed union, but the two companies won't be fishing the same waters, analysts said.
In just two years, Lockheed has taken a commercial applications business from scratch to having an $800 million backlog. "I don't detect Northrop Grumman doing as much on the commercial IT front [as Lockheed]," said Wolfgang Demisch, an analyst with Bankers Trust in New York. Although most analysts agree that Lockheed and Northrop will not step on each other's toes as they grow their respective IT businesses, they will still be competitors. "They will certainly compete in numerous areas," said Peter Aseritis, an analyst with Credit Suisse First Boston in New York. "People think that Northrop should move more strongly into IT. They will meet Lockheed head-on in that market. In order to compete as equals, Northrop will have to do some huge acquisitions." But Merrill Lynch's Callan, who does not envision a blood bath between the two companies, said that Lockheed and Northrop are probably walking away from their almost union more cooperative than competitive. "In an odd way, this whole process may have drawn the two a little closer," he said. "I expect to see them work together in some of their niches in the future."
|
NEXT STORY: Washington Technology Online State of the $tates