Eagle fuels series of acquisitions

It is well known in the government that companies often turn to acquisitions as a way of accessing important markets and customers.

If you don't have the contracts or the clearances or the relationships, it is often more efficient to buy another company that does.

As the government increasingly turns to large multiple award contracts, having the right procurement vehicle has become even more important. Many of these vehicles are seen as the contract of choice for their home agency and if a company doesn't win a spot on that contract, they risk being shut out of business with that agency.

An example of how this market trend has fueled acquisitions is the Homeland Security Department's Eagle contract. Awarded in June 2006 to 53 companies, the contract is seen as the vehicle of choice for IT services for the Homeland Security Department.

Since its award, nine of the companies have been acquired. Seven of those companies were small businesses. All of the buyers but two were companies that didn't already hold a spot on the contract.

The exceptions, Dynamics Research Corp. and Perot Systems Government Solutions, acquired companies that gave them access to new functional areas under the contract.

Perot acquired QSS Group Inc. and DRC acquired Kadix.

The other deals:
  • ManTech International acquired McDonald Bradley
  • Qinetiq North America acquired 3H Technology LLC
  • Apptis acquired Base One Technologies
  • Bart & Associates acquired Digital Solutions
  • Wyle Inc. acquired RS Information Systems, which owed part of an Eagle contract joint venture, Energy Enterprise Solutions.
  • VSE Corp. acquired G&B Solutions Inc.
  • Harris Corp. acquired Multimax, which owned part of the MultimaxArray joint venture.

The Eagle contract likely wasn't the only factor in many of these acquisitions but it was a deciding factor.

As the use of Eagle continues to expand at DHS, the companies on the contract will become even more tempting acquisition targets.

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

  • POWER TRAINING: How to engage your customers

    Don't miss our June 7 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 and senior staff writer Ross Wilkers discuss the major news events so far in 2019 and what major trends are on the horizon. 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.