General Dynamics to Buy Anteon for $2.1 Billion
Defense contractor General Dynamics Corp. on Wednesday agreed to buy Anteon International Corp. for about $2.1 billion in cash, in a move to expand its technology services to the U.S. government and military.
General Dynamics, known for its Abrams tanks and Gulfstream business jets, is paying a 36 percent premium over Anteon‘s closing share price, or about 1.3 times Anteon‘s projected annual sales, above the level of the most recent deal in the sector.
The move is the latest in a line of small and mid-size acquisitions by defense contractors looking to beef up their technology and intelligence-related business, and to get a larger share of the U.S. defense budget.
Shares of Anteon rivals SI International Inc. and CACI International Inc. rose more than 10 percent in expectation of further deals.
Source: NY Times.
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