The top 10 defense acquisitions of 2010

Defense opportunities drive the year's biggest deals

A need for a robust defense business was the driving factor behind CGI Group’s acquisition of Stanley Inc. in 2010 and that deal has been picked as the best deal of the year in the government market.

CGI paid $1 billion for Stanley to gain access to the company’s defense and intelligence customers, which accounted for more than 77 percent of Stanley’s nearly $900 million in annual revenue.

The acquisition was picked as the top deal by Defense Systems sister publication Washington Technology as part of its annual M&A roundup issue.

While the CGI-Stanley deal was picked as the best overall acquisition, ManTech International’s purchase of Sensor Technologies Inc. for $242 million was picked as the best defense-related acquisition.

The deal further solidified ManTech’s offerings in critical areas such as command and control and other areas.

Babcock International Group’s $2.1 billion acquisition of VT Group carried the highest price tag of any acquisition, defense or civilian, last year. VT Group provides a variety of defense-related services including training, base and range support, and logistics.

Another large defense deal was Cerberus Capital Management’s acquisition of DynCorp for $1.6 billion. DynCorp provides a variety of mission support services including infrastructure, land systems, training and logistics.

The 2010 top 10 defense deals, ranked by value are:

Buyer Headquarters Seller Value
Babcock Intl Group PLC London VT Group $2.1B
Cerberus Capital New York City DynCorp International $1.6B
CGI Group Inc. Montreal Stanley Inc. $1.1B
Veritas Capital New York City Lockheed Martin EIG $815M
Boeing Co. Chicago Argon ST Inc. $799M
ManTech Intl Corp. Fairfax, Va. Sensor Technologies Inc. $242M
Wyle Laboratories Inc. El Segundo, Calif. CAS Inc. (from ITT) $235M
Cubic Corp. San Diego Abraxas Corp. $124M
Elbit Systems Ltd. Haifa, Israel M7 Aerospace $85M
Global Defense Technology & Systems Inc. McLean, Va. Signature Government Solutions LLC $53M
Source: Houlihan Lokey and Washington Technology

About the Author

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

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