U.S. Army Awards Lockheed Martin $483M JAGM, HELLFIRE Follow-On Production Contract

On the same subject

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  December 9, 2020 | International, C4ISR, Security

  Northrop sells IT business to Veritas Capital for $3.4B

  WASHINGTON — Northrop Grumman has struck a $3.4 billion deal to sell its federal IT and mission support business to Veritas Capital. The agreement, announced Dec. 7, is expected to close by June 2021. At that point, Veritas plans to incorporate the Northrop business units with Peraton, a Veritas subsidiary that supports government customers and specializes in technology products for the space, defense and intelligence markets. Northrop is expected to generate $2.3 billion in revenue, which will be funneled into share repurchases and debt retirement, the company said in a news release. “This divesture allows us to drive value and reflects our strategy of focus on growing core businesses where technology and innovation are the key differentiators,” said Kathy Warden, Northrop's CEO and president. “We expect to create compelling value to our shareholders through this transaction and execution of our capital allocation strategy.” Reports of the sale first surfaced in October. Byron Callan, an analyst with Capital Alpha Partners, said that the sale shows there is still isn't consensus within the defense industry on how to organize IT and services businesses alongside more traditional hardware business units for products like aircraft, vehicles or other weapons. Callan pointed to Lockheed Martin's sale of its information and global services business to Leidos in 2016; L-3′s sale of its IT solutions division to CACI in 2015; and Harris' sale of its IT business to Veritas in 2017, which later became Peraton. However, other major companies have acquired government IT companies, such as General Dynamics's purchase of CSRA in 2018. “We have believed that as DoD spending flattens in the 2020s, primes could seek to jettison ‘non-core' businesses that will still be profitable, but face declining sales or more intense competition,” Callan wrote in an email to investors. https://www.c4isrnet.com/industry/2020/12/08/northrop-sells-it-business-to-veritas-capital-for-34b/

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  June 11, 2019 | International, Aerospace, Security

  Why the new Raytheon Technologies will eschew platforms for new technology development

  By: Aaron Mehta WASHINGTON — “Platform agnostic.” It's a term getting a lot of play from United Technologies CEO Greg Hayes and Raytheon CEO Tom Kennedy, in the wake of this weekend's surprise announcement that the two companies would be merging into a new firm,known as Raytheon Technologies Corporation. Neither company works as a platform producer, eschewing the production of aircraft or ground vehicles and instead focusing on the technology that makes them work. It's a business model that has produced well for both firms, and in a Monday interview with Defense News, the two CEOs made it clear they see no need to deviate now. “One of the first and foremost things we absolutely agree on is, we want to be platform agnostic,” Hayes said, noting that UTC sold off its Sikorsky helicopter unit almost five years ago because “we didn't like the programmatic risk associated with platforms.” “We'll supply all the content and all the systems, all of the offensive, defensive capabilities necessary to make the system successful, but we really think it's important that we remain agnostic among the platform providers,” Hayes added. Said Kennedy, “Neither of us essentially develop platforms or sell platforms. Why that's important is, really, the amount of capital that you have to go and spend in maintaining and creating these platforms kind of takes your eye off the ball relative to investing in technology moving forward. So that was a big feature, that both companies are platform agnostic.” Instead, both men said the new firm will remains focused on developing high-end technologies which can be inserted on, or in, platforms developed by the other major defense primes. With that goal in mind, the company is preparing to spend $8 billion in R&D funds in the year following its merger. When the merger is completed in early 2020, Kennedy will become chairman of the board, with Hayes serving as CEO. Two years later, Kennedy will step down, with Hayes adding the chairman title. One area Kennedy highlighted as having good synergies is hypersonic weapons, a major interest for the Pentagon. Raytheon has already been working on hypersonic missiles, including the guidance and control systems, but UTC's experience with propulsion and materials science might be able to help deal with a specific challenge for Raytheon's weapon designers. “It just turns out when you're flying at Mach 5, you really increase your temperature on all your surfaces," Kennedy said. "If you have a propulsion system, the air is coming in at such a high speed, that creates a significant amount of heat; it has to be dissipated in a very efficient way,” Kennedy said. “And one of the areas that the United Technologies has, really based in the Pratt & Whitney guys, is all the technology that they've developed over the years in working very high temperatures internal to their turbine engines,” he continued. “So not only do they have, I would call it the heat management capabilities, but also the material science to go implement those.” Hayes identified two areas where shared R&D will have a near-term impact, and they underline the benefit of having a new company that will be roughly 50-50 defense and non-defense business. The first is on aircraft control systems, where each company has technologies that can be brought to bear for the FAA's next-generation air traffic control networks. The second comes in the form of cybersecurity. “I think Raytheon is second to none as it relates to cyber, and we view this as a core competency that can benefit the entire commercial aerospace ecosystem,” Hayes said. “Not just the connected aircraft, which is probably the first order of business, but the whole ecosystem. How do you protect passenger data, how do you protect the equipment that's on the ground? How do you protect the airplane while it's flying? “I think we'll see that shortly in the marketplace.” https://www.defensenews.com/industry/2019/06/10/why-the-new-raytheon-technologies-will-eschew-platforms-for-new-technology-development/

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  October 5, 2022 | International, C4ISR

  Space Force's digital push focuses on 'Spaceverse'

  The service seeks an immersive, virtual environment that can be used to connect groups, enhance training and make testing a system more collaborative.