General Dynamics to buy Anteon
- By Nick Wakeman
- Dec 14, 2005
In a blockbuster deal involving two of the largest IT players in the government market, General Dynamics Corp. today announced it was acquiring Anteon International Corp. for $2.2 billion.
General Dynamics will pay $55.50 a share in cash for Anteon. Anteon's shares closed at $40.77 on Tuesday. General Dynamics' shares closed at $112.09. The deal also includes the assumption of $100 million in Anteon debt.
The boards of both companies have approved the transaction, which is expected to close in the second quarter of 2006.
Both companies are in the top 20 of Washington Technology's 2005 Top 100 list of the largest government IT contractors. General Dynamics is ranked No. 5, and Anteon holds the No. 13 spot.
General Dynamics of Falls Church, Va., has about 71,900 people worldwide and had 2004 revenue of $19.2 billion. Anteon of Fairfax, Va., has about. 9,500 employees and anticipates 2006 revenues of $1.7 billion.
Once the deal closes, Anteon will become part of General Dynamics Information Systems and Technology Group.
On Tuesday, General Dynamics announced it was acquiring FC Business Systems Inc. of Fairfax, Va. Terms of that deal were not disclosed. FC Business Systems has about $150 million in annual revenue.
Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.