Defense and Government M&A wrap-up for the week ending 1/29/16
This was an eventful week on the M&A front highlighted by announcements of several significant deals. The week started with the announcement of the controversial merger of Johnson Controls and Tyco in a tax-inversion deal that will move Johnson Controls' headquarters to Ireland, saving the combined entity an estimated $150M in annual tax expense. The second major deal announced is the combination of Leidos and Lockheed Martin's IS&GS business which will create the largest government services contractor in the US. And finally earlier today, spurred by activist investor Carl Icahn, Xerox announced that it will spin-off its BPO business to shareholders in a tax-free deal.
The following are all the deal announcements from this past week:
Xerox to Spin-off Services Business
Xerox announced that it will spin-off its Business Process Outsourcing business to shareholders in a tax free deal by the end of the year.
SOS International Acquires New World Solutions
SOS International LLC (SOSi) announced that it has acquired New World Solutions, a Service Disabled Veteran Owned Small Business based in Fairfax, Virginia that provides imagery science, cyber analytics, and advanced technology research to defense and intel customers.
Tetra Tech Completes Acquisition of Coffey International
Tetra Tech Inc. announced that it completed the acquisition of Coffey International Limited on January 18, 2016. The deal was originally announced last October. Based in Sydney, Australia, Coffey provides technical and engineering solutions in geoscience and international development.
AgentHero Merges with MPP to Create MILLIE
AgentHero, a national network of real estate agents who are all veterans or military spouses, announced that it has merged with the Military Property Project (MPP) to create MILLIE. MPP provides military personnel and their spouses with the resources to manage, own, and invest in real estate. MILLIE is an online community to support military families during relocations to new duty locations.
BRMi Acquires Clearsoft
Battle Resource Management Inc. (BRMi) announced that it has acquired Clearsoft Inc., an IT services company based in Fairfax, Virginia that provides agile enterprise software development and systems integration services to the Federal government and commercial organizations.
Cognizant Acquires KBACE Technologies
Cognizant announced that it has acquired Nashua, New Hampshire-based KBACE Technologies Inc., a consulting firm specializing in cloud strategy, implementation, and integration. KBACE's specialty is Oracle Cloud applications and the company's 400 consultants provide services across various industries including aerospace & defense, industrial manufacturing, medical device/product based life sciences, and high-tech manufacturing.
Addtech to Acquire Goodtech Products
Addtech Group announced that it has acquired Norwegian firm Goodtech Products AS, a provider of products, solutions, and services in the field of automation to the industry and the public sector.
VCI Acquired by Basin Material Handling LLC
M&A advisory firm Generational Capital Markets Inc. announced that its client VCI Inc. was acquired by Basin Material Handling LLC in a deal that closed on December 10, 2015. VCI manufactures and customizes material handling racks in the automotive and government contracting market.
e2v Technologies Acquires SP Devices Sweden
e2v Technologies plc announced that it has acquired Linköping-based Signal Processing Devices Sweden AB (SP Devices), a provider of high performance sub-system solutions for analogue to digital conversion applications used by customers in various markets including industrial test & measurement, healthcare, communications and science.
Orion International Acquires Novotus
Orion ICS LLC (Orion International) announced that is has acquired Novotus, a leading provider of Recruitment Process Outsourcing (RPO) and recruiting services.
Rockwell Collins Adds Matrix Series Projector Product Lines from Christie Digital Systems
Rockwell Collins announced that it has agreed to acquire the assets of the Matrix series projector product lines from Christie Digital Systems.
Leidos and Lockheed Martin's IS&GS Business to Combine
Leidos Holdings Inc. announced that it has entered into a definitive agreement to combine with Lockheed Martin's realigned Information Systems & Global Solutions business (IS&GS) in a Reverse Morris Trust transaction which will preserve the tax-free nature of the split-off. The combined company will have annual revenues of approximately $10 billion.
Johnson Controls and Tyco To Merge in Tax-Inversion Deal
Johnson Controls Inc. and Tyco International plc announced that they will merge in a deal in which Johnson Controls shareholders will own about 56 percent of the combined company and Tyco shareholders will own 44 percent. In addition, Johnson Controls shareholders will receive approximately $3.9 billion in cash consideration. The most controversial aspect of the deal will be the relocation of Johnson Control's headquarters to Ireland which will save the combined company an expected $150 million in tax expense.
PwC Acquires Praxism
PwC announced that it has acquired Praxism, a small Scotland-based cybersecurity firm that specializes in identity and access management.
Search our free M&A database to find information on deals in the Defense and Government sectors.