British defense giant's purchase includes US entity

Babcock International will pay $2 billion for VT Group

U.K.-based defense contractor Babcock International Group plc will purchase VT Group plc and its U.S.-based VT Group for $2 billion.

When the acquisition is finalized in late July, VT Group will be rebranded as Babcock International, David Dacquino, VT Group’s chief executive officer told Washington Technology today.

“That’s always painful when you change your brand,” he said, “but fortunately from a U.S. perspective, that’s all that changes really, except for the additional capability that I will have.”

The company, based in Gaithersburg, Md., is a primary provider of submarine communications and shore-based command, control, communications, computing and information technology systems, and it is one of the largest Navy contractors.

London-based Babcock specializes in defense, including naval submarine services and engineering support.

Dacquino said Babcock also has a strong training capability that he wants to leverage in this country.

When the merger is completed, “we will be about 27,000 employees and about $4.5 billion [in revenues] internationally, including the U.S. ops,” he said.

Dacquino explained that VT Group works through a proxy board in the U.S. to which he reports. “That allows [us] to be a sole U.S.-capable company and bid on contracts, including classified contracts,” he said.

“So obviously [there will be] no difference in delivery, there’s no change to our customer-facing personnel that we have,” Dacquino said, and he added that the leadership team and the proxy board will remain in place.

VT Group will be the seventh acquisition for the British company in five years. “We basically double their size," he said. "This is a big one for them."

Last year, under Daquino’s direction, the company then known as VT Services combined its three U.S. operations under the name VT Group.

Since then, he has trimmed the leadership team to four executives, including two presidents to manage all the U.S. operations.

The U.S. company accounted for approximately $500 million in revenue in 2009, he said.

About the Author

David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.

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.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.