General Dynamics completes Veridian acquisition

General Dynamics Corp. completed its acquisition today of Veridian Corp. More than 80 percent of Veridian shareholders approved the sale in a vote held Aug. 7.

The transaction was first announced June 9. It cleared the mandatory government waiting period July 28.

Under the terms of the agreement, Falls Church, Va.-based General Dynamics will pay $35 in cash for each outstanding share of Arlington, Va.-based Veridian. With the assumption of Veridian's $263 million of debt, the cost of the transaction is approximately $1.5 billion.

The acquisition is immediately accretive to General Dynamics' earnings and cash flow, according to the company.

When the deal was announced, Veridian's stock was trading at $27.35. Since then it has been trading near the offer price. The company, which went public in May 2002, has a 52-week range of $17.50 to $34.99. Veridian was ranked No. 22 on Washington Technology's Top 100 list.

General Dynamics stock traded at $78.90 on Monday. The company has a 52-week range of $50 to $88.02. It was ranked No. 7 on the Top 100.

Veridian's four divisions, employing 7,300 people, will become part of two businesses within General Dynamics Information Systems and Technology group. Veridian's Engineering, Information Solutions and Systems divisions are joining General Dynamics Advanced Information Systems, which provides solutions in command and control, intelligence, surveillance and reconnaissance. Veridian's Information Technology Services division is becoming part of General Dynamics Network Systems, designs and builds complex telecommunications networks.

Ken Dahlberg, executive vice president of General Dynamics' Information Systems and Technology group, said the acquisition strengthens his company's work in network security and enterprise protection; intelligence, surveillance and reconnaissance; information systems development and integration; chemical, biological and nuclear detection; network and enterprise management; and systems engineering expertise.

"The Information Systems and Technology group has been the fastest-growing part of General Dynamics. The acquisition ? accelerates our growth and enhances our presence in the industry," Dahlberg said.

General Dynamics employs approximately 57,000 people worldwide. Company officials estimate the firm's 2003 revenue will be $15 billion.

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close

Trending

  • POWER TRAINING: How to engage your customers

    Don't miss our Aug. 2 Washington Technology Power Training session on Mastering Stakeholder Engagement, where you'll learned the critical skills you need to more fully connect with your customers and win more business. Read More

  • PROJECT 38 PODCAST

    In our latest Project 38 Podcast, editor Nick Wakeman interviews Tom Romeo, the leader of Maximus Federal about how it has zoomed up the 2019 Top 100. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.