Industry Week in Review – December 20, 2013
The Senate voted to pass the 2014 National Defense Authorization Act (“NDAA”) and send defense legislation to the Office of the President for the 53rd consecutive year. In a vote that ended minutes before midnight Thursday, the chamber voted 84 to 15 in favor of the NDAA, which clears the Pentagon to spend $607 billion in 2014, including $527 billion in base funding and $80 billion for global operations and war supplementals. The legislation, which passed the House in a 350 to 69 vote last week, is considered a bipartisan, bicameral bill by officials and includes a number of provisions to ensure that the Department of Defense can carry out its essential national defense missions. Among these, the Army will be provided funds to upgrade ground vehicles and keep key production lines running, the Air Force’s A-10 attack plane fleet will be protected under a provision through the end of 2014, and the Navy has received a price cap on its aircraft carrier programs. Relief was felt within the aerospace and defense industries as many worried that a prolonged impasse could have led to another costly government shutdown in January.
Big Movers
SAAB AB (Up 33.4%) – Shares were up this week after the Company won a contract to supply 36 jet fighters for the Brazilian Air Force in a deal worth an estimated $4.5 billion.
Textron Inc. (Up 18.5%) – Shares were up this week after rumors circulated that the Company will acquire Beechcraft Corporation in a deal worth an estimated $1.4 billion.
Relevant Transactions
Orolia SA to acquire Techno-Sciences, Inc., a provider of COSPAS-search and rescue satellite aided tracking technology and support services to commercial and government clients worldwide. Terms of the deal were not disclosed
Google, Inc. acquired Boston Dynamics, Inc., a provider of dynamic robots and software for human simulation including simulation-based training, UAV training, law enforcement, and mission-planning applications. Terms of the deal were not disclosed.
