1
Second Quarter 2013
% Change
Q1 2013 Q2 2013 YTD
Defense Prime Index
3.3% 12.6% 16.3%
Government Services Index
15.6%
(0.4%)
15.0%
Defense Systems Index
3.7% 7.3% 11.3%
Middle Market D&G Services Index
12.9% 10.8% 25.1%
Large Cap Aerospace Index
12.0% 7.8% 20.7%
Mid Cap Aerospace Index
13.0% 7.8% 21.8%
Small Cap Aerospace Index
9.5% 17.8% 29.0%
S&P 500
10.0% 2.4% 12.6%
Quarterly Industry Snapshot
Source: Public Filings; Capital IQ as of 06/28/13
Notable Quarterly M&A Activity
Capital Markets
TransDigm agreed to acquire Arkwin Industries for
$286 million (05/15/13)
PAE agreed to acquire CSC’s Applied Technology
Division (ATD) for $175 million (05/29/13)
Ultra Electronics acquired Varisys Limited (06/06/13)
Precision Castparts agreed to acquire Permaswage
(06/26/13)
Raytheon acquired Visual Analytics (06/27/13)
Industry News Quarterly Summary
Booz Allen Hamilton technician, Edward Snowden, leaked to The Guardian newspaper top secret information exposing PRISM, the
US government’s top secret defense program. The leaks revealed the US government’s interception of audio and video chats,
photographs, emails, documents and connection logs from US Service Providers.
The US Navy's X-47B became the first unmanned craft to fully execute both a catapult launch and a landing from an aircraft carrier
flight deck. The demonstrations took place aboard the USS George H.W. Bush off the Virginia coast.
Defense Secretary Chuck Hagel announced that the DoD would be implementing 11 furlough days for most civilian employees, one
day a week, starting July 8 and continuing through the September 30 fiscal year end. The DoD furloughs, while significantly less
severe than the 22 days originally planned, will save the department $1.8 billion.
IBM prevailed in its protest of the 10-year, $600 million CIA contract awarded to Amazon Web Services in January. The Government
Accountability Office (GAO) found that the CIA failed to evaluate prices comparably under one of the solicitation’s pricing scenarios,
waiving a requirement in the Request For Proposal only for Amazon. The GAO has advised that negotiations be reopened.
Orbital Sciences successfully launched its Antares rocket in a test flight, setting the stage for it to become the second commercially-
built spacecraft to transport supplies and astronauts to the International Space Station.
The first flight of Bombardier's new C-Series jet was delayed by a month to late July.
The next generation Airbus 350 made its maiden flight on June 14.
