BUSINESS NEWS

25 Aug 08. Italian antitrust regulators on Monday said they approved defence and aerospace group Finmeccanica’s (SIFI.MI: Quote, Profile, Research, Stock Buzz) takeover of U.S. defence company DRS Technologies Inc. (DRS.N: Quote, Profile, Research, Stock Buzz). The $4bn takeover, which is expected to close in the fourth quarter, is still awaiting approval from U.S. authorities including the Committee on Foreign Investment in the United States which examines national interest issues. (Source: Google/Thomson Reuters)

27 Aug 08. Serco Inc., the U.S.-based division of leading international service company Serco Group plc, and SI International, Inc. (NASDAQ: SINT) announced that they have entered into a definitive merger agreement. Under the agreement, Serco will acquire SI International for $32 per share in cash, or an aggregate purchase price on a fully diluted share basis of approximately $423m. Serco will also assume SI International’s debt which, at June 28, 2008, was $87.3m, net of cash. The per share purchase price represents a premium of 40 percent over SI International closing stock price on August 26, 2008. SI International is one of the federal contracting sector’s most recognized companies, focused on mission critical technology, information services, outsourcing, and network solutions for U.S. federal defense and civilian government clients. The proposed transaction has been unanimously approved by the board of directors of both companies. The proposed acquisition of SI International would be the second major transaction in three years for the North American division of Serco and would propel the combined company to the tier of $1 billion-plus federal contractors in the U.S. Based upon 2007 reported financial results, the combined companies would have total revenues of approximately $1.3bn and 11,500 employees serving government clients. The proposed transaction will further strengthen Serco’s growing portfolio of services to the Department of Defense, U.S. intelligence and security agencies and federal civilian agencies. The transaction, which is expected to close by the end of 2008, is subject to an affirmative vote of SI International’s shareholders, regulatory approvals including Hart-Scott-Rodino and Exon-Florio, and customary closing conditions. SI International’s shareholders will have an opportunity to vote on the proposed transaction at a special shareholder meeting to be scheduled at a later date. This proposed transaction would further evolve Serco’s North American organization into a management services business with a broad and balanced portfolio of government clients, contracts and capabilities. In 2005 Serco acquired defense contractor RCI and in 2007 won nearly $1 billion in major contracts involving logistics, port security, transformation of critical government services, aviation services and military personnel support for clients that include the U.S. Army, Navy, Marine Corps, and the U.S. Postal Service. Serco was named the Most Admired Support Services Company in the UK and has approximately 40,000 employees in 30 countries, with 7,000 employees in North America.

21 Aug 08. L-3 Communications, the US defence electronics company, will continue to scout for expansion opportunities in the UK after a flurry of deals, its chief executive has told the Financial Times. In the past three years, L-3 has made two bolt-on acquisitions in the UK, including TRL, an electronic warfare specialist. It is also chasing orders on important equipment procurement programmes for the Ministry of Defence, winning a contract to upgrade the Nimrod reconnaissance aircraft last year. On Tuesday, the company won an $18m contract from the Royal Air Force to replace wing components on C-130K aircraft. Mike Strianese, L-3 chief executive, told the Financial Times that he envisaged scope for further acquisitions and partnerships in the UK market. Mr Strianese, who took over at the head of the company t