Lockheed Martin Corporation
) has acquired U.K. based business, Amor Group, for an
undisclosed sum. This strategic move will propel Lockheed Martin
into Britain's top 10 companies for IT services.
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Headquartered in Glasgow, Scotland, Amor Group - which provides
IT systems for the energy, public service and transport sectors -
has over 500 employees across seven facilities in the U.K. This
strength would extend Lockheed Martin's expertise to important
contiguous business areas like energy, government health care and
The defense major has acquired all of Amor's shareholders,
comprising Growth Capital Partners and the management. Now, this
buyout will make Amor a part of Lockheed Martin's information
systems and global solutions unit.
Amor has its existence in another 15 countries. Its distinctive
transportation systems run more than 3 million aircraft movements
and track 700 million passengers each year. This would complement
Lockheed Martin's operations with the U.S. Federal Aviation
Administration and many other international customers.
Lockheed Martin and other defense biggies are gradually looking
to diversify their presence in order to generate more sales in
the face of domestic budget austerities and sequestration.
Acquisitions like this will enrich Lockheed's operations while
keeping the top-line growth momentum intact. The U.S. Department
of Defense has already planned to slash its spending level by
$500 billion over the next 10 years. This is on top of $487
billion in cuts that were already planned for roughly the same
Lockheed Martin is the largest defense contractor in the world.
The company's customer base includes the U.S. government, foreign
governments and other commercial buyers.
The company delivered better-than-expected second quarter
earnings, which surged almost 11% from the year-ago profit level.
The upcast in earnings was mainly attributable to strong
operational performance. This drove the management to raise its
full-year EPS guidance to $9.20-9.50 from $8.80-9.10.
Lockheed Martin presently retains a short-term Zacks Rank #2
(Buy). Other better-placed operators include
Northrop Grumman Corp.
Alliant Techsystems Inc.
B/E Aerospace Inc.
). While Alliant Techsystems carries a Zacks Rank #1 (Strong
Buy), Northrop and B/E Aerospace hold a Zacks Rank #2 (Buy).