FEDERAL DATA DEAL SET NORTHROP TO PAY $302 MILLION FOR INFORMATION SUPPLY FIRM.Byline: Chris Sieroty Staff Writer Northrop Grumman Northrop Grumman Corporation (NYSE: NOC) is an aerospace and defense conglomerate that is the result of the 1994 purchase of Grumman by Northrop. The company is the third largest defense contractor for the U.S. Corp. will pay $302 million to buy Federal Data Corp., a privately held information systems supplier for the federal government, Northrop announced Wednesday. The transaction includes approximately $127 million in cash, $157 million in debt and $18 million in other transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). . The acquisition is not expected to affect Northrop Grumman's current fiscal-year profits, but will likely add earnings next year. Bob Bishop, Northrop's manager of corporate public information said the company plans to fold Federal Data into its Logicon information-technology unit. Logicon, based in Herndon, Va., had sales of $1.5 billion last year. Northrop expects the deal to close within 45 days, he said. Based in Bethesda, Md., Federal Data, currently owned by the investment firm The Carlyle Group  The of this article or section may be compromised by "weasel words".You can help Wikipedia by removing weasel words. The Carlyle Group is a Washington, D.C. , reported revenues of $584 million last year. Its clients include the Internal Revenue Service, the Pentagon, the Veterans Administration and the National Aeronautics and Space Administration National Aeronautics and Space Administration (NASA), civilian agency of the U.S. federal government with the mission of conducting research and developing operational programs in the areas of space exploration, artificial satellites (see satellite, artificial), . It employs 1,400 people. ``The acquisition of Federal Data is an excellent strategic fit with Logicon, our information technology sector, which is one of the company's key engines of growth,'' said Kent Kresa, Northrop's chairman and chief executive officer, in a statement. Late last year, Federal Data was awarded an eight-year $260 million NASA NASA: see National Aeronautics and Space Administration. NASA in full National Aeronautics and Space Administration Independent U.S. contract under which it will develop, build and operate microgravity mi·cro·grav·i·ty n. 1. An environment in which there is very little net gravitational force, as of a free-falling object, an orbit, or interstellar space. 2. research facilities and payloads for space shuttle missions <onlyinclude> This is a list of missions flown by space shuttles. As of 2006, only the United States has flown human spaceflight shuttle missions, in the Space Shuttle program, while the Soviet Union flew one unmanned flight of the Buran. and the International Space Station. The Veterans Administration also recently awarded Federal Data a $55 million contract extension to provide continuing information technology support for its benefits modernization program. ``Coupled with our recent acquisition of Comptek Research, we continue to acquire businesses with significant growth prospects which we believe will provide long-term value for our shareholders,'' Kresa said. Northrop Grumman, the fifth-largest U.S. defense contractor, provides systems integration, defense electronics and information technology to the United States and international military, government and commercial clients. The Los Angeles-based company had revenues of $7.6 billion in 1999 and has a work force of approximately 37,000 employees. Shares of Northrop fell 12.5 cents, or 0.16 percent, Wednesday to close at 79.94 on moderate volume of 480,700 shares traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. . |
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