Lockheed Martin closes ACS deal
- By Nick Wakeman
- Nov 26, 2003
Lockheed Martin Corp. and Affiliated Computer Services Inc. finished their asset swap, with Lockheed Martin picking up most of ACS' federal business, and ACS acquiring Lockheed Martin's commercial IT units.
Bethesda, Md.-based Lockheed Martin will pay about $658 million for most of ACS' federal business, including $70 million payable pursuant to a five-year, noncompete agreement.
Dallas-based ACS will pay about $107 million for Lockheed Martin's commercial information technology business. The net value of the deal is $551 million to ACS.
Lockheed Martin is picking up about $700 million in revenue. ACS will gain about $300 million. With the acquisition, Lockheed Martin is changing the name of its Technology Services sector to Information and Technology Services.
ACS' state and local government business is not included in the sale to Lockheed Martin. ACS will also keep its contract with the Department of Education to provide student loan processing services. Last week, the company won a five-year, $1 billion recompete of that work.
Lockheed Martin is ranked No. 1 on Washington Technology's 2003 Top 100 list, which measures federal contracting revenue. ACS is ranked No. 16.
Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.