Northrop Grumman to Acquire Comptek

By Nick Wakeman, Staff Writer


JUNE 13 ? Northrop Grumman Corp. of Los Angeles is planning to buy Comptek Research Inc. of Buffalo, N.Y., for $155.6 million in stock. Comptek brings Northrop $145 million in annual revenue and 1,200 employees with capabilities in electronic battle management, command and control systems and information warfare.


The deal, which was announced June 12, is expected to close in 60 days.


"This acquisition is an excellent fit and enhances our leadership position in advanced battle management and [electronic warfare] systems integration," said Kent Kresa, Northrop Grumman's chairman, president and chief executive.


Comptek develops operational signal processing software for airborne and shipboard electronic warfare systems, mission planning systems, and precision targeting systems for precision-guided munitions.


The company has developed electronic warfare systems for fighter planes such as the F-22 Raptor, F-15 Eagle and F/A-18 Hornet, the B-2 and B-1B bombers and Aegis class warships. Comptek also provides combat systems engineering, operational support and project management services for the Naval Sea Systems Command.


Comptek has four divisions and those will be integrated into Northrop Grumman's existing divisions of Integrated Systems and Aerospace Sector, Electronic Sensors and Systems Sector and Logicon Inc., the IT division.


"This is a good little company," said Thomas Meagher, vice president of equity research for BB&T Capital Markets of Richmond, Va.


Also June 12, Northrop Grumman announced that it is selling its aerostructures business to the Carlyle Group of Washington for $843 million in cash and securities. That business mostly makes parts for commercial aircraft builders.


The deal with Carlyle and the Comptek acquisition show that Northrop Grumman is focusing on its defense business as a growth area, Meagher said.