Italian defense firm expands U.S. presence with DRS buy

DRS Technologies Inc., a rising star in the government information technology services world, is being acquired by Finmeccancica SpA, an Italian defense company looking to expand in the U.S. market.

If the $5.2 billion cash deal is approved by regulators, DRS will operate as a wholly owned subsidiary under its current management and with a board of directors separate from Finmeccanica's board. The structure is required for the company to comply with U.S. national-security laws.

The transaction allows Finmeccanica to consolidate its international role as a supplier of integrated systems for defense and security. The deal also allows DRS to pursue new business opportunities in the United States and abroad, the companies said in a statement.

Through contract wins and its own acquisitions, DRS has climbed steadily in the government services market. It made its debut on the Washington Technology Top 100 in 2005 at No. 75. In the 2008 rankings released Monday, it holds the No. 22 position.

DRS is expected to continue to grow after the acquisition closes by the end of this year.

"This investment in DRS ? with an increased emphasis on research and development ? will mean the combined company will be able to compete for and win additional contracts around the world, accelerating growth and expanding opportunities at our facilities in the U.S.," said Mark Newman, chairman of the board, president and chief executive officer at DRS.

Finmeccanica's expertise lies in helicopters, defense electronics and security, aeronautics, space, defense systems, energy, and transportation. DRS has strengths in command, control, communications, computers and intelligence; reconnaissance, surveillance and target acquisition; sustainment systems; and technical services.

Finmeccanica has several U.S. subsidiaries, most doing helicopter and aircraft work.

The company is offering DRS stockholders $81 a share, 32 percent more than average for the previous 30 days of trading.

About the Author

Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.

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

  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Our databases track awards back to 2013. Read More

  • Navigating the trends and issues of 2016 Nick Wakeman

    In our latest WT Insider Report, we pull together our best advice, insights and reporting on the trends and issues that will shape the market in 2016 and beyond. Read More

contracts DB

Washington Technology Daily

Sign up for our newsletter.

I agree to this site's Privacy Policy.