P> Defense is still big business. Northrop Grumman Corp. plans to buy Westinghouse Electronics Systems Corp., the Baltimore, Md.-based defense electronics division of Westinghouse Electric Corp., for the nominal sum of $3 billion in cash. Northrop Grumman could close the acquisition, pending government review, by March 31.
Northrop Grumman of Los Angeles has gotten Chase Manhattan, Chemical Bank and the Bank of America to commit $4.8 billion to finance the purchase and replace its current credit facility. The company expects to be able reduce its 1995 net debt by more than $200 million to $1.6 billion.
Kent Kresa, Northrop Grumman's president and CEO, said he expects the purchase to help the company grow its electronics and systems integration business based in Bethpage, N.Y. Westinghouse Electronics, which estimated 1995 sales at $2.6 billion, has been in the defense electronics business for more than four decades -- a business Kresa believes has significant growth potential. "When you couple that with our own existing growth potential, Northrop Grumman's total revenues by the year 2000 could easily exceed $10 billion," he said. The California company estimated its 1995 sales at $6.8 billion.
Westinghouse Electric's CEO Michael Jordan said the new parent of its defense and electronics business "will definitely improve the prospects for the business." The electronics division has $3.8 billion of fully funded federal and international contracts and another $4 billion worth of potential follow-on contracts.
BDM mentors small business. BDM Federal Inc. has taken Mitchell Systems Corp., a small, disadvantaged business in Arlington, Va., under its wing as part of the Pentagon's Mentor-Prot?g? program. The two companies have signed an agreement to market Mitchell's information system architecture product, the Architecture Design and Analysis Planning Tool. ADAPT lets organizations document all their computer systems, networks, operating systems and applications running on specific machines at any point in time.
Dyn's on the prowl -- again A source at DynCorp said the Reston, Va., company is searching aggressively for a company to buy. But the question is, since when has Dyn not been looking for an acquisition? Since 1988, Dyn has purchased nine technology companies. This time, however, Dyn probably wants an infotech company that can build its commercial business base and that's worth $25 million to $100 million.