Industry Week in Review – November 16, 2012

Over the past week, Marine Gen. Joseph F. Dunford Jr. testified before the Senate Armed Services Committee during a nomination hearing to be the next commander of the International Security Assistance Force (“ISAF”).  As the top American military official in Afghanistan, Dunford noted U.S. Forces will likely remain in the country past the Obama administration’s December 2014 deadline.  Dunford also noted the top priorities during this time would be training and advising indigenous forces, supporting civilian Afghan agencies, and strengthening counterterrorism operations.

Big Movers

OSI Systems, Inc. (Down 17.8%) – Shares are down this week after the House Transportation Security Subcommittee claimed in a letter to the Transportation Security Administration that OSI “may have attempted to defraud the government by knowingly manipulating an operational test.”  The Company has responded by saying it could not have manipulated testing since the processes was entirely controlled by the government.

Woodward, Inc. (Up 7.1%) – Shares are up this week after the company reported net income above consensus estimates for the company’s fiscal fourth quarter.  Revenue rose to $528.7 million, an 8.1% increase over the same period last year.

Select Relevant Transactions

PricewaterhouseCoopers (“PWC”) acquired Ray Group International, provider of highly-technical IT solutions and professional services throughout the Department of Veterans Affairs (“VA”).  The acquisition expands PWC’s legacy business advisory presence within VA and uniquely position the newly combined entity as a leader in Health IT services across VA and throughout the federal government.  KippsDeSanto acted as financial advisor to Ray Group International.

CACI International to acquire Emergint Technologies, a provider of emerging technology solutions focused on data-driven needs of national health organizations.  The acquisition builds on CACI’s healthcare IT capability and expands its presence in the growing healthcare IT market.  Emergint expects to have 2012 revenue of approximately $42 million.  KippsDeSanto acted as financial advisor to Emergint Technologies.

Lockheed Martin acquired Chandler/May, a company that specializes in the design, development, integration, manufacturing, and support of fully-integrated mission-critical systems for unmanned aerial systems and C4ISR missions.  The acquisition expands Lockheed’s offerings in support of its customers’ increased emphasis on these mission areas.  Terms of the deal were not disclosed.

TWD & Associates acquired The Engle Group, a provider of IT services, solutions, and support to the federal government.  The acquisition expands TWD’s capabilities in IT service management, cloud computing, application development, and security, as well as data and organizational change management.  Terms of the deal were not disclosed.

Salient Federal Solutions acquired LIST Innovative Solutions, a provider of information technology, engineering, and intelligence analytic services to agencies in the intelligence, defense, homeland security, cybersecurity, and federal civilian markets.  The acquisition expands Salient’s prime federal software / application development contracts to over 90% of its contracts base.  Terms of the deal were not disclosed.

Westat acquired Geostats Services, a research and technology company with expertise in advanced technologies for the collection, analysis, and presentation of geospatial mobility and physical activity data.  The acquisition helps Westat further expand its research offerings.  Terms of the deal were not disclosed.

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