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General Dynamics
continues defense tech spree
by Virginia Business Staff
July 2003
Making
ships and corporate jets is becoming a sideshow for
Falls Church-based General Dynamics Corp. The big new
things are high tech and homeland security. The company
is buying Arlington-based defense contractor Veridian
Corp. for $1.2 billion in hopes of claiming a share
of rising Pentagon spending in these areas.
General
Dynamics would also assume $270 million in Veridian
debt if the deal is approved by shareholders and the
government. The deal is scheduled to close by the end
of this quarter.
There’s
little overlap between the two companies, General Dynamics’
vice president for its Information Systems and Technology
group Kenneth Dahlberg said during an analyst conference
call. General Dynamics core markets in building ships,
jets and combat machinery. The 7300-employee Veridian,
itself the product of a string of acquisitions, covers
other areas — intelligence, surveillance, and chemical,
biological and nuclear detection. It has also made inroads
into homeland security, Dahlberg says, “which we
see as a burgeoning market for our company.”
General
Dynamics has 57,000 employees worldwide and estimates
revenues this year of $15 billion. Veridian anticipates
revenues this year of $1.2 billion and it has a current
business backlog of $2.6 billion.
Veridian
CEO David Langstaff said his firm alone wasn’t
quite big enough in defense contracting sector, which
has seen big companies such as Lockheed Martin and Northrop
Grumman snapping up smaller firms. “When you take
Veridian and combine it [with the General Dynamics group]
you’ve got a $5 billion to $6 billion business
that is a major player overnight.”
Virginia
Business - July 2003
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