Prime defense contractor
Lockheed Martin Corp.
) seems to be on an acquisition spree as the company announced that
it has inked a deal to buy Zeta Associates, Inc. The details of the
buyout were kept under wraps and the transaction is subject to
customary closing conditions.
The acquisition is anticipated to be completed in the third quarter
of 2014. Following the completion of the acquisition, Zeta
Associates will merge with Lockheed Martin's Space Systems
Good news also poured in at Lockheed's Space Systems as it
clinched a $38.4 million U.S. Air Force modification contract for
the Advanced Extremely High Frequency ("AEHF") System program. The
deal involves providing critical software enhancement services for
Mission Planning Development for initial operational capability in
2015. The contract will run through Jun 30, 2015 and the work will
be carried out in California.
Lockheed Martin's Aeronautics arm also received an $18.4 million
order for the procurement and supply of electronic parts required
to support the production, sustainment, operation and maintenance
needs of the F-35 aircraft.
Coming back to the acquisition, the addition of Zeta Associates
will broaden Lockheed's diverse portfolio and provide access to
cutting-edge defense technologies that is vital for U.S. air and
space-based intelligence missions.
Zeta Associates develops software technologies that enable
effective gathering, processing, safeguarding and dissemination of
critical intelligence data for classified national security
Military intelligence serves as the backbone of U.S. defense
infrastructure and will continue to find a place in Pentagon's
defense budget. The Pentagon is likely to concentrate on ratcheting
up its defense intelligence capabilities and has retained Lockheed
Martin's key space systems programs in the proposed FY2015 budget.
This stimulus is prompting Lockheed to expand its military space
product coverage through constant technological innovation as well
Lockheed Martin recently acquired Astrotech Space Operations
("ASO"), reflecting the company's efforts to increase market
penetration. The acquisitions will consolidate Lockheed Martin's
space operations and keep the company well-positioned to attract
major defense deals in the future.
Currently, Lockheed Martin carries a Zacks Rank #2 (Buy). Other
similar ranked defense players include
The Boeing Company
General Dynamics Corp.
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