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As of 12/31/2016
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Year in Review
2016
M&A Activity Summary
Source: Public Filings, Industry Newswires, S&P Capital IQ
2016 demonstrated continued activity among strategic buyers with
a number of significant transactions. Consolidation remained a
central trend as many of the largest players sought to strengthen
their positions in core markets. Leidos’ acquisition of Lockheed
Martin’s IS&GS group for $4.6 billion represented the most
strategically significant transaction for the government services
sector in 2016. While Lockheed Martin’s divestiture represented
an increased focus on its core markets, Leidos sought to broaden its
portfolio of capabilities with the addition of the IT division.
Also among the most notable deals in the sector was CACI
International’s $550.0 million acquisition of L-3 National Security
Solutions (representing a revenue multiple of 0.5x), as the company
looked to position itself as one of the largest pure play IT
companies in the government space, alongside Booz Allen, SAIC
and CSRA.
Continuing the consolidation trend was DigitalGlobe’s $140 million
acquisition of the Radiant Group. The transaction strengthens the
company’s position as the leading commercial source for geospatial
information and insight to the IC.
Among the largest transactions for the year was Rockwell Collins’
$8.3 billion acquisition of B/E Aerospace. The transformative
acquisition further accelerates Rockwell’s growth and strengthens
the company’s position as the leading supplier of cockpit and cabin
solutions.
Notable Strategic Deals
ADG Strategic Buyer Trends
Information Systems & Global
Solutions Business (IS&GS)
Acquired
Acquired
Acquired
Acquired
Acquired
Acquired