Just another day
Posted in Career, Change, work on July 28th, 2008
Yes, another GLORIOUS MONDAY!
Why?, Because I came into work today, opened up outlook, and saw an email outlining this:
BAE Systems Agrees to Buy Detica for $1.05 Billion (Update3)
By Kari Lundgren
July 28 (Bloomberg) — BAE Systems Plc, Europe’s biggest defense company, agreed to pay 531 million pounds ($1.05 billion) for Detica Group Plc as it expands its homeland-security business.
BAE offered 440 pence in cash for each share of Detica, whose software supports U.K. Ministry of Defence counter- terrorism operations and tax-fraud detection by the U.S. Internal Revenue Service, the London-based company said in a statement today. The offer, approved by both boards, represents an 18 percent premium on Detica’s July 25 closing price.
“It’s a strategic deal at a full price,” Numis Securities Ltd. analyst Clive Forestier-Walker said in a phone interview. Detica would give BAE a “strong foothold” in the U.K., he said. Forestier-Walker advises buying BAE shares.
Defense companies have increased their focus on counter- terrorism after the Sept. 11, 2001, attacks on New York and Washington. BAE has already sold secure computer systems to the U.S. Department of Homeland Security and the Federal Bureau of Investigation. BAE may make more purchases in the national security market, which may exceed 3 billion pounds by 2011, Forestier-Walker said.
Guildford, England-based Detica rose as much as 69.75 pence, or 19 percent, to 442 pence in London and traded at 437.25 pence as of 1:13 p.m. The shares jumped a record 33 percent on July 21, when the company announced it received a preliminary takeover approach from an undisclosed suitor.
BAE added 0.75 penny, or 0.2 percent, to 446 pence.
Platform for U.S.
“This acquisition will combine Detica’s well established customer relationships and technical capabilities together with our system integration capabilities,” Ian King, chief operating officer of BAE’s U.K. and international division, said in the statement. BAE’s “existing activities and structure will provide a platform for us to apply Detica’s capabilities into the U.S. homeland security market.”
In a separate statement, Detica said its sales in the three months ended June 30 advanced 14 percent, boosted by government contracts, which account for more than half its business. The company did not say how much sales were. Full-year forecasts remain unchanged, it said, without giving numbers. Detica also counts Barclays Plc and HBOS Plc among its customers.
“Strong demand in our government markets has more than offset the continuing weakness in our financial services unit,” Detica said in the statement.
Including debt, the transaction is valued at 538 million pounds, BAE Systems said.
Now most of you don’t know that I work for Detica, and have “tehcnically” been with them for 16 months now. Not happy in the least about it, because they purchased my company 16 months ago, told us nothing would change, didn’t really bring anything “new” to the table in terms of contracts or project work honestly, and laid off 20+ of my colleges and friends 60days after that statement…. that alone pretty much had a huge ripple effect for all of us that were there at the time.
Don’t get me wrong, they did bring more capabilities to the table, and shored up two very stable divisions within our organization. But overall, it’s been a wild ride. And given the fact that people from my company are readers, and others will read this i’ll keep it at that…….by saying it’s be a Wild Ride.
-B.Price
