The price tag was just under a billion, so IT infrastructure is not cheap if you have not already figured that out. If you remember Cash for Clunkers, that was created by Vangent. As military contracts become smaller or non existent, defense contracting companies are looking to fill the pipelines elsewhere. Vangent employs more than 8000 individuals across the US and a few in the UK.
Some of the investors who currently own a majority stake in the company at Veritas look to cash in here. Back in September of 2010, Northrop Grumman, who does a lot of work for HHS, was bracing for layoffs and were exploring their options as well. BD
Defense Contractors Focusing on Software Assets with Cut Backs With Defense Spending–More Health IT Software Houses
Falls Church-based General Dynamics said Tuesday it will pay close to $1 billion to acquire Arlington-based Vangent, a federal contractor that specializes in health care services.
The deal comes as defense contractors, anticipating reduced Pentagon spending, particularly on large equipment, look to diversify. Many are seeking to expand their information technology practices in areas expected to grow, including health care and cloud computing.
Vangent, which is majority-owned by private equity firm Veritas Capital, is to become part of General Dynamics Information Technology, which already has a portfolio of health IT work. General Dynamics said its board already has approved the $960 million transaction, and it is expected to close by Oct. 1.