For the first time in a while, investors are betting big on “big government.”
The federal services market has experienced a jolt of dealmaking activity in recent months as companies position themselves to capture new government spending, breathing life into a sector that has been sluggish for years.
In late January, fast-growing technology contractor ECS Federal was bought for $775 million by On Assignment, a California-based recruiting firm with little experience in the federal market. In the same week, Lockheed Martin spinoff PAE bought the firm Macfadden & Associates in a move that was largely viewed as an effort to consolidate amid shifting budgets.
Meanwhile, Falls Church, Va.-based defense giant General Dynamics upped the ante last week when it announced a $6.8 billion agreement to buy CSRA, one of the largest government IT services firms. Also last week, two private equity firms added to their stable of federal contractors: Veritas Capital is acquiring the government business of PricewaterhouseCoopers; and Arlington Capital Partners is buying a small engineering services firm called Integrity Applications.
Keep reading this article at: https://www.washingtonpost.com/business/capitalbusiness/dealmaking-accelerates-as-federal-contractors-jockey-for-spending/2018/02/18/1c707acc-1343-11e8-9065-e55346f6de81_story.html