This week, the U.S. State Department announced a $29.4 billion sale of Boeing-made F-15 fighter jets to Saudi Arabia under the Foreign Military Sales program. The agreement includes 84 new aircraft, the modernization of 70 existing aircraft, as well as missiles, spare parts, training, maintenance and logistics. White House spokesman Joshua Earnest said the sale reinforces “the strong and enduring relationship between the United States and Saudi Arabia, and demonstrates the U.S. commitment to a strong Saudi defense capability as a key component to regional security.” According to a recent report from the Congressional Research Service, Saudi Arabia has remained one of the top three purchasers of U.S. defense articles and services since 2003.
After more than two years of delays, Russia delivers its nuclear-powered attack submarine, Nerpa, to the Indian military under a 10-year lease program. The lease has angered India’s arch-rival Pakistan and resulted in retaliation threats. Nerpa will be the first nuclear-powered submarine to be operated by India in nearly two decades since its last Russian-borrowed vessel was decommissioned in 1991. Russia supplies 70 percent of India’s military hardware.
Magellan Aerospace Corp. (Up 10.8%) – Shares are up this week after the company announced an agreement to deliver aluminum and titanium components to GKN Aerospace. The contract extension is projected to generate revenues in excess of £200 million (~$310 million) through December 2017.
Computer Sciences Corporation (Down 10.5%) – Shares are down this week after the company warned it may write down a $1.5 billion contract with Britain’s National Health Service. Implied volatility has increased as the company narrows its search for an outsider to be its CEO.
Raytheon acquired Henggeler Computer Consultants, a cybersecurity and software engineer firm. The acquisition expands Raytheon’s capabilities to serve the cybersecurity, enterprise architecture and systems engineering needs of customers in the intelligence community as well as in the Department of Defense. Terms of the deal were not disclosed.