Ross Wilkers

M&A

One week. Five done deals

(NOTE: This story was updated Monday afternoon to reflect PAE's completion of two acquisitions versus one. I spoke too soon when this story was published.)

Within the span of a week, four acquisitions of significant size and scope in the government market and a fifth with as of yet an undisclosed value all closed.

Here is a refresh of three we covered previously and a fifth that the buyer only revealed Friday.

Amentum

  • What they are paying: Terms undisclosed.
  • What they get: Greater capacity at $6 billion in revenue and 34,000 employees in nearly 30 countries, plus new customers like the State Department and Army’s Aviation and Missile Command.
  • What they have said: “One of the areas that (DynCorp has) been focusing on is asset management just as we have, not just supply chain management but asset management and logistics,” Amentum CEO Vollmer told us in November. “Our combined organizations are going to make us very strong in a market that is growing exponentially.”

PAE

  • What they are paying: $208 million.
  • What they get: New intelligence community and national and homeland security customers, plus around 700 employees with the highest-level security clearances.
  • What they have said: “By combining Centra's capabilities with these new customers, it opens up exciting new market segments for PAE that were previously out of reach,” PAE CEO John Heller told investors in an Oct. 26 conference call.

PAE (again)

  • What they are paying: $92 million.
  • What they get: Like with Centra, an increased footing with intelligence and security agencies, but Metis also gives the buyer at least eight new contract vehicles. 
  • What they said: “PAE can bid large contracts and we have, including in the intelligence or national security business, but we didn’t have that broad capability set that would enable us to really attack a large addressable market... Now we’ve expanded that to where we see you’ve got an end-to-end capability that allows us to really position to bid just about any opportunity in that national security mission support domain," Heller said in a Nov. 16 earnings call.

Parsons

  • What they are paying: $300 million.
  • What they get: A portfolio of products around spacecraft ground control and spacecraft integration, 370 employees and a contract to help Space Force unify ground control operations across multiple agencies.
  • What they said: “From a national defense perspective, (we) have a lot of satellites in orbit that are being controlled by multiple systems and the beauty of an enterprise ground system, enterprise ground services, like the work that Braxton does, is it allows the Defense Department, NASA, others to be able to control or communicate between those multiple systems at one point,” Parsons CEO Chuck Harrington said in a Nov. 4 earnings call.

Kratos Defense & Security Solutions

  • What they bought: 5-D Systems, announced as a completed deal Friday.
  • What they paid: Terms undisclosed.
  • What they get: The base for a new unmanned systems engineering hub, plus a presence in Austin, Texas that the Army Futures Command and Defense Innovation Unit also have footprints in.
  • What they said: “5-D brings specific new capabilities to Kratos with their legacy manned conversion (optionally piloted vehicle) and larger aircraft experience including the QF-4, with the associated runway takeoff and landing modes that have direct application on several Kratos pursuits,” Kratos CEO Eric Demarco as quoted in a release.

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