Online Extra: Dealmaking shakes up the Top 100
Some familiar names disappeared from this year's Top 100, but not because business was bad. Business at these companies was good?so good, in fact, that larger companies gobbled them up.
Some familiar names disappeared from this year's Top 100, but not because business was bad. Business at these companies was good?so good, in fact, that larger companies gobbled them up.The biggest and perhaps oldest name to disappear was TRW Inc., whose roots stretch back over a 100 years. Northrop Grumman Corp., No. 2, acquired TRW, No. 8 last year, in an $7.8 billion deal.Also dropping off the list was DynCorp., No. 22 a year ago, which was bought by Computer Science Corp., No. 5.IBM Corp., No. 18, picked up PricewaterhouseCoopers Consulting, No. 46 last year. And Veridian Corp. , No. 22, bought Signal Corp, No. 39 last year. The deal helped move Veridian up 31 spots on the rankings, from No. 53 last year.Science Applications International Corp., No. 3, acquired Computer Systems Technology Inc., which held the No. 97 spot last year.Anteon International Corp., No. 14, unintentionally thwarted the Top 100 debut of Information Spectrum Inc. when it purchased the Annandale, Va., company in April. Information Spectrum would have been ranked No. 97 on this year's list.Dealmaking was heavy in 2002, with 79 acquisitions in the government IT sector. This year promises to be just as active: Thirty-one deals have been announced so far, according to the investment banking firm Houlihan Lokey Howard & Zukin, Los Angeles.New acquirers also are entering the market place. ITS Services Inc. of Springfield, Va., and No. 84, was purchased in early April by a management team led by Todd Stottlemyer, a former senior executive at BDM International and BTG Inc., Paul Leslie, who led BDM's systems development and integration business unit, and Phil Odeen, former president and chief executive officer of BDM and most recently chairman of TRW.They are backed by Arlington Capital Partners, a $450 million Washington-based private equity fund, and have said they plan to make more acquisitions as the build the company.Another new player is Perot Systems Corp., No. 56. Perot initially bought ADI Technology Corp. to gain a foothold in the government market and then followed that deal with the purchase of Soza & Company Ltd, which was No. 81 last year. The dealmaking shows no sign of slowing. In April, CACI International Inc., No. 19, announced its intention to acquire Premier Technology Group Inc. of Fairfax, Va. The deal will be CACI's 22nd in the past 10 years.Acquisitions "will be a continuing part of our model," CACI Chairman and Chief Executive Officer Jack London said on the eve of the purchase. "We have lots of ammunition left."
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