11 septembre 2018 | International, C4ISR

SAIC to buy rival government services contractor Engility for $1.5 billion

WASHINGTON (Reuters) - Science Applications International Corp (SAIC) (SAIC.N) said on Monday it will acquire Engility Holdings Inc (EGL.N) for $1.5 billion in stock, a deal that will turn it into the second-largest independent U.S. government services contractor.

The acquisition is the latest example of how increased defense spending under President Donald Trump and the Republican-led Congress is driving contractors to pursue mergers so they have more scale to bid on bigger projects, spanning everything from outdated computer systems to space exploration.

Engility shareholders will receive $40.44 in SAIC stock for each of their shares, an 11.5 percent premium to Engility's closing price of $36.24 on Friday, the companies said. SAIC will assume $900 million in Engility debt, giving the deal a total value of about $2.5 billion.

On completion of the deal early next year, SAIC's board will expand to 11 seats from nine, and SAIC shareholders will own about 72 percent of the combined company.

Engility, based in Chantilly, Virginia, provides skilled personnel to the U.S. departments of defense, homeland security and justice, among others. The acquisition will boost SAIC's offerings to its space customers and expand its customer base in the intelligence community, SAIC Chief Executive Tony Moraco said in an interview.

The increased U.S. defense budget and a two-year budget deal reached earlier this year that lifted caps on defense spending also emboldened SAIC to pursue the deal, Moraco added.

Full article: https://www.reuters.com/article/us-engilityholdings-m-a-saic/saic-to-buy-rival-government-services-contractor-engility-for-1-5-billion-idUSKCN1LQ1CG

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  • Israel increases training via virtual battlefield center amid Hezbollah tensions

    6 août 2020 | International, C4ISR

    Israel increases training via virtual battlefield center amid Hezbollah tensions

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Virtual training centers, like the one the IDF uses, have been increasingly popular worldwide. Elbit points to its work with the Royal Netherland Army simulation center (SimCen). “Military operations are becoming increasingly complex, while large-scale exercise opportunities occur less frequently due to cost, logistics and environmental constraints. Elbit Systems' new trainer provides Armed Forces with a flexible and scalable solution to train commanders,” according to Elbit Systems. The Givati brigade is usually deployed in southern Israel opposite the Gaza frontier. “The training prepared us for battle from a different angle. we will implement this on the battlefield on the day of command,” Shamaka said. Israel has faced tensions with Hamas in Gaza over the last years, including more than 1,500 rockets fired and clashes along the border, incidents at sea and involving drones. 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The system documents failures in the field and virtual casualties inflicted to help units learn from mistakes. Because the IDF's Momentum plan foresees bringing as many capabilities to the front as quickly as possible during a conflict, this digital battlefield aids in improving coordination. It is supposed to close gaps between battalion and company levels as well without eliminating traditional field exercises. Cohen says recent upgrades mean the simulator gives more than 100 officers from company to brigade level access to peripheral units, logistics, UAVs, helicopters, artillery, aircraft and all the other combined arms and elements that may be present on the battlefield. That means that pilots have the opportunity to sit in the same room on the virtual trainer behind a screen and then meet with their company commander counterparts for after action discussions that wouldn't necessarily take place in a field exercise. With Hezbollah tensions overshadowing training this July, the virtual exercise mimicked real-world challenges. “The virtual exercise was designed and generated to take place on the Lebanese border, in the Northern region of Israel. Facing the constant threat of attacks from Hezbollah, the IDF needs to be prepared to respond accordingly,” Shamaka said. “Should there be a need to destroy Hezbollah's infrastructure in Lebanon, we must be able to maneuver in a populated and complex environment. This virtual simulation system provides personnel with experience and familiarizes them with the hostile environment they would need to face in the case of conflict.” In the past Israel faced challenges in the 2006 war because of communications problems between units and dealing with Hezbollah fighters dug-in to the rural terrain and rocket fire near villages. Maj. Gen. Yoel Strick, ground forces commander of the IDF since 2019 and a key part of the Momentum multi-year changes, has been pushing for increased use of the virtual simulators, Cohen said. Elbit expects an expansion of training next year. https://www.defensenews.com/global/europe/2020/07/27/israel-increases-training-via-virtual-battlefield-center-amid-hezbollah-tensions

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  • Army Takes Its Radio Network Commercial

    21 août 2018 | International, C4ISR

    Army Takes Its Radio Network Commercial

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