Q3 2008 Government Transactions

Northrop Grumman acquires 3001

Northrop Grumman Corporation is acquiring 3001 International, Inc. 3001, owned by its management and CM Equity Partners, provides geospatial data production and analysis, including airborne imaging, surveying, mapping and geographic information systems for domestic and international government intelligence, defense and civilian customers. The addition of 3001 will significantly complement Northrop Grumman’s current core geospatial business. Its strong geospatial data collection, processing and production capabilities help the company further address the critical needs and priorities across civilian, defense, intelligence, homeland security, energy and environmental business areas, from both domestic and international perspectives.

Announcement Date: September 10, 2008
Deal Value: Undisclosed

IHS Acquires Documental Solutions, LLC

IHS Inc., a global source of critical information and insight, has acquired Documental Solutions LLC, a provider of market intelligence and analysis tools for the defense and aerospace industry. Documental Solutions provides market-leading analysis and decision-support tools for strategic planners, business developers and analysts within the defense and aerospace industry. Its flagship product, DS Forecast, is a visual, interactive and personalized market analysis solution utilizing research from a vast array of sources to provide a powerful force-multiplier to their customers’ existing analytical and commercial operations. Combining the market analysis tools of Documental Solutions with the industry-leading insight of Jane’s Information Group creates a world-class solution for the global defense industry. Documental Solutions products are a perfect complement to Jane’s existing defense market data and insight products – now enabling customers to carry out the highest level of strategic market analysis, through to very tactical program analysis, sales opportunity capture and tender support.

Announcement Date: September 4, 2008
Deal Value: $24.5 Million (Cash – done at 10X forward EBITDA)

Serco to buy SI International

Serco Group PLC (UK) is acquiring SI International Inc., a U.S. federal contractor. SI provides information technology and outsourcing services to the Department of Defense, the Department of State and other clients.

Announcement Date: August 26, 2008
Deal Value: $423 Million (Cash and the assumption of $87.3 million in debt)

CAE to acquire Bell Aliant’s Defense Security Business Unit

CAE is to acquire Bell Aliant's Defense, Security and Aerospace business unit (Canada), currently operated by the xwave division of Bell Aliant Regional Communications, Limited Partnership. xwave's DSA team supplies real-time software and systems for simulation, training, defense, and integrated lifecycle information management for the aerospace and defense industries. The move expands CAE's defense capabilities and footprint across Canada, particularly in Ottawa, Atlantic Canada and British Columbia. By joining CAE and the CAE Professional Services team, xwave's DSA professionals will provide it with a portfolio of complementary capabilities, including systems integration that will enhance CAE's ability to serve Canada as well as the global defense and homeland security markets.

Announcement Date: August 5, 2008
Deal Value: $26.1 Million (Cash and earnout)

AMERICOM Government Services to acquire AOS

Satellite solutions provider AMERICOM Government Services (AGS) is acquiring AOS, Inc., engineers of secure telecommunications technologies and global network mobility. AOS, Inc. provides highly secure, customized, turnkey network mobility and communications solutions, and engineering, program management, IT consulting and managed network services. AMERICOM says the benefits of the acquisition of AOS, Inc. will be reflected in the added value they are creating for their U.S. Government customers. Operational security is an important aspect of how its customers operate – the integration of AOS technology with AMERICOM’s satellite solutions will enable enhanced communications for the U.S. Government worldwide.

Announcement Date: August 5, 2008
Deal Value: Undisclosed

QRSciences acquires Spectrum

QRSciences Pty Ltd has acquired all of the remaining shares of Spectrum San Diego, a maker of homeland security products specializing in the design of electronic imaging systems and instrumentation. QRS Corp already owns 33.4% of Spectrum. Combining the two companies will create a multi-technology and IP-rich developer of security scanning and imaging with an important portfolio of intellectual property. Products of the combined companies will include: 1) CastScope(TM), a screening system used in airports and other locations for scanning prosthetics and casts; 2) SentryScope(TM), a unique ultra-high-resolution 180 degree camera system in use at locations internationally for security monitoring of crowds and large areas; and 3) other technology and intellectual property with applications in security screening. It will also own royalty-generating patents currently licensed to General Electric for a shoe-scanning system designed for airport usage.

Announcement Date: August 4, 2008
Deal Value: $9.32 Million

Northgate acquires Anite Public Sector

Northgate Information Solutions has agreed to acquire Anite Public Sector Holdings Limited, which incorporates Anite’s local government and secure information systems businesses. The deal, which comes four months after the acquisition of Northgate Information Solutions plc by private equity firm Kohlberg Kravis Roberts & Co (KKR), demonstrates the new owners’ commitment to expand Northgate’s public service business and to realize value through successful and strategic acquisition. The acquisition enables Northgate to deliver improved and enhanced services to its local government clients, including adding to its leading position in revenues and benefits and housing by becoming the number one provider of social care and document management services.

Announcement Date: August 1, 2008
Deal Value: $96.9 Million

BAE acquires Detica Group

BAE Systems PLC (UK - through an undisclosed wholly-owned subsidiary) agreed to launch a tender offer to acquire Detica Group PLC (UK), a provider of business and technology consulting services. Detica Group provides business and technology consulting services that specializes in information intelligence and focuses on information intensive areas of security and resilience, fraud containment, risk management, regulatory compliance and customer management, for government and commercial customers. It also has technology-related operations such as data warehousing, data analytics, data quality, advance operational systems, web integration, enterprise content management, text mining, search and retrieval, and communication monitoring.

Announcement Date: July 29, 2008
Deal Value: $1 Billion (Cash)
Seller Revenue: $402 Million (ttm)

Constellation Software acquires Municipal Solutions Group

Constellation Software’s wholly-owned subsidiary N. Harris Computer Corporation has acquired Municipal Solutions Group. MSG is focused on the delivery of permits and inspections, planning and zoning, and code enforcement software solutions to municipal government clients throughout North America. MSG will complement Harris' growing land management solution practice with the addition of a market leading solution and over 125 customers.

Announcement Date: July 18, 2008
Deal Value: Undisclosed

SI International to acquire Arrowpoint Corporation

SI International, Inc., an information technology and network solutions company, is acquiring Arrowpoint Corporation, a provider of IT services and solutions to the U.S. Federal Government. The company has approximately 150 employees with 80 percent holding security clearance. Headquartered in Alexandria, Va., Arrowpoint has extensive knowledge of National Guard programs, requirements, and contract acquisitions. The acquisition expands SI International's relationship with key Department of Defense (DoD) clients.

Announcement Date: July 16, 2008
Deal Value: $16 Million (Cash plus potential of $9 million in performance-based earnout)

The O’Neil Group Company acquires Braxton Technologies Inc.

The O’Neil Group Company acquired Braxton Technologies Inc. The new company will operate as Braxton Technologies, LLC, and will continue to deliver software products, engineering, operations and maintenance for development, deployment, and sustainment of command and control systems. The O’Neil Group Company is a corporation specializing in strategic acquisitions and services. Braxton focuses on building an integrated commercial command and control product line for use in both satellite and weapons control applications. The systems utilize a standardized core architecture and custom elements that can be tailored for reuse in future command and control systems.

Announcement Date: July 14, 2008
Deal Value: Undisclosed

SRA acquires Interface & Control Systems, Inc.

SRA International, Inc., a provider of technology and strategic consulting services and solutions to government organizations, has acquired Interface & Control Systems, Inc., a product development and engineering services firm specializing in real-time, embedded and autonomous command and control software systems for space applications. ICS is a leading developer of integrated ground and flight autonomous command and control software and services for government and commercial mission-critical projects. The company specializes in delivering automation software for satellites, control centers, ground stations, test sets, simulators and e-business systems. With ICS' domain expertise in autonomous command and control, SRA strengthens its position in a strategically significant market segment. The ICS acquisition brings to SRA an experienced management team, a highly specialized employee base and valuable intellectual property.

Announcement Date: July 2, 2008
Deal Value: Undisclosed