GlobalData records huge drop in M&A activity in the past year
Deals activity by geography
Defence, aerospace and security industry deals, as captured by GlobalData, are up year-on-year (YoY) across most regions, despite a significant decline in M&A activity.
Looking at all types of deals, North America is leading in terms of deal value, but recorded a slight YoY decline in deals volume at -4%. South and Central America and Asia-Pacific are leading in terms of deal volume, with a 33% YoY growth each, while YoY growth is up 15% in Europe and down -32% in Middle East and Africa, respectively.
M&A snapshot: year-on year-change
Analysis of mergers and acquisitions (M&A) completed in the past 12 months, as recorded by GlobalData, shows a -100% drop in mergers YoY in the aerospace, defence and security industries, with a total of 41 recorded. Acquisitions are down 97% YoY with 2,946 deals recorded, while asset transactions are up 1% with 741 deals.
|Deal Type||Total deal value ($m)||Total deal count||YoY change, volume|
Deals in brief
Northrop Grumman completes divestment of IT services business for $3.4bn
Northrop Grumman has completed the divestment of its IT services business to an affiliate of US-based private equity firm Veritas Capital for $3.4bn. As previously agreed, the divested business will combine with Peraton, which focuses on providing intelligence, communications and other services to select federal agencies and commercial entities. The combined business will operate as Peraton and will be led by Peraton chairman, president and CEO Stu Shea.
McKean Defense Group acquires Mikros Systems
McKean Defense Group has completed its acquisition of Mikros Systems, a company that provides hardware and software solutions for advanced maintenance applications, for nearly $4.6m in cash. The deal closed after Mikros secured necessary stockholder approval for the merger. Mikros will now operate as a wholly owned subsidiary of McKean. The acquisition, the first by McKean, is expected to enhance its combat systems monitoring and diagnostic analytics portfolio.
Oshkosh completes acquisition of Pratt Miller for $115m
Mission-critical vehicle and equipment manufacturer Oshkosh has completed its acquisition of Pratt Miller for a cash-free, debt-free purchase price of $115m. The deal closed more a month after the two companies signed a definitive agreement ;to execute the transaction. Founded in 1989, Pratt Miller was a key player in the US robotic vehicle market and was working with QinetiQ to deliver prototypes of the US Army’s Robotic Combat Vehicle-Light.& The acquisition will strengthen Oshkosh’s engineering capabilities as well as improve the combined firm’s product performance.
Huntington Ingalls Industries acquires Spatial Integrated Systems’ autonomy business
US military shipbuilding company Huntington Ingalls Industries has strengthened its portfolio by acquiring Spatial Integrated Systems’ autonomy business. The acquisition, which closed on 31 December, is the latest move by Huntington in expanding its capabilities in the unmanned domain.
|Deals value by theme||2019||2020|
|Internet of things||$101bn||$43.7bn|
|VR and AR||$1.3bn||$34bn|
Note: All numbers as of 8 February 2021. For more insight and data, visit GlobalData's Aerospace, Defense & Security Intelligence Centre.
Latest deals in brief
BAE Systems and Meggitt sign deal for Typhoon radar equipment
BAE Systems has awarded Meggitt a £4.2m contract to supply nose radome technology for the Eurofighter Typhoon’s Multi-Function Array radar system. BAE Systems is working with Leonardo to equip some UK Typhoons with the new European Common Radar Systems Mk 2 (ECRS Mk 2), which gives the fighters the ability to locate, identify and suppress adversaries air defences. The radome developed by Meggitt protects instrumentation from environmental effects and prevents electromagnetic interference with the equipment.
Kongsberg and Pratt & Whitney sign contract for F-35 engine maintenance facility
Kongsberg Aviation Maintenance Services has signed a contract with Pratt & Whitney to open F-35 fighter aircraft engine maintenance facility at Norway. The site at Rygge will be one of five maintenance, repair, overhaul and upgrade facilities to be developed worldwide to enhance maintenance capabilities of the F135 engine that powers the F-35 aircraft. The contract covers the transition of the Kongsberg facility from activation and training to qualification and operations in order to achieve initial depot capability by the end of next year.
BAE Systems and University of Birmingham partner for advanced sensing technologies
BAE Systems has signed a partnership agreement with the University of Birmingham for the development of advanced sensing technologies. The resulting Advanced Sensing Technologies Consortium is part of the National Quantum Technologies programme, which is funded by the UK Government and seeks to support four technology hubs based in the UK.
Danish Defence and Fleet Complete partner to improve vehicle access
Danish Defence has partnered with global provider Fleet Complete to use its fleet management and carsharing solution. As part of this collaboration, 2,000 Danish Defence vehicles have been subscribed for the solution. The mobile reservation and carsharing app will improve access to vehicles for all defence staff members around the country. This will also allow assets to be used to conduct operations in a more economical and environmentally responsible manner.