Industry Week in Review – September 13, 2013
With Congress currently focused on the Syrian conflict, many experts expect the House and Senate to approve a temporary government-wide continuing resolution (“CR”) this month, which would fund Federal departments at 2013 levels. After the expiration of this temporary CR on December 15th, Congress would have to pass either another temporary CR or consider taking up a full-year CR, a long-term government funding bill that many congressional aides have speculated would include a full 2014 defense spending measure.
Officials have echoed the need for a full defense appropriations bill. Under the potential temporary CR, the Pentagon is limited in its ability to execute a variety of activity including starting new acquisition programs, shifting investment levels, initiating new production lines, and negotiating multiyear contracts. The full defense appropriations would allow the Pentagon to shift investment levels in the multiple programs starting or changing throughout the year. Conversely, continuing at prior levels under the temporary CR tends to create inefficiencies, as funds are typically locked in accounts regardless of the needs of the Department of Defense (“DoD”).
In the government services space, Honeywell Technology Solutions won a $550.4 million option to support the Air Force Satellite Control Network through 2016. Under the option, Honeywell will provide network support integration, system and maintenance engineering, and software maintenance to both DoD and Non-DoD satellites.
iRobot Corporation (Up 9.7%) – Shares were up this week after the Company announced it obtained preliminary injunctions through the District Court of Dusseldorf in Germany against Shenzhen Silver Star, the Chinese business whose products had infringed four separate iRobot patents.
SAIC, Inc. (Up 7.2%) – Shares were up this week after the Company announced it will separate its systems integration business into a new publicly-traded company, Leidos, in a stock and cash transaction worth more than $295 million.
Unisys Corporation (Up 7.1%) – Shares were up this week after the Company announced its new EMC Data Domain solution will be made available on its ClearPath Libra systems, allowing clients to increase efficiency and lower the cost of storage.
Lockheed Martin Corporation acquired Amor Business Technology Solutions Limited,a Scotland-based provider of business technology solutions and professional and managed IT services to energy, transport, and public sectors. Lockheed will use the acquisition to expand internationally as well as grow its capabilities in civil government services and energy markets. Terms of the deal were not disclosed.