Just another day
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
July 28th, 2008 at 10:30 pm
The world of business just works like this- small fish are eaten by bigger fish, who are then eaten by even bigger fish and so on. Until you’re a big fish without predators, being eaten is always a possibility, like it or not. The alternative? Stay a little fish cowering behind a rock- some people prefer it, to each their own. There is a lot to be lost and gained at various stages of the food chain. It has nothing to do with what these positives and negatives are, moreover, how you perceive them and make them work to your advantage. Its a balancing act everyone plays.
Its disheartening to see you cast a blanket of distrust on everyone. It projects one hell of a shadow.
July 28th, 2008 at 11:00 pm
Don’t know exactly where I’ve labeled anyone in this post, nor where I said that the foundation of my trust had been shook be any recent events that have taken place in this company. I never addressed it, I addressed the changes being made in an organization in which i’m affiliated. I pointed out things that typically happen in acquisitions of this type. Things I didn’t like.
I just wasn’t happy with those decisions, that’s not, nor has it ever been a secret to those that know me well in this organization. I’m just more vocal about it then other people have been/are. Again, this is something that i’ve experienced among other things in this organization that I briefly touched on. Hence the purpose of this blog ‘This is my life’. To share that openly.
My perspective is going to be different from yours because of not only my time in the company, but my exposure to different elements, events, people, conversations, and overall information since early 2006, which by any measure is vast a far reaching beyond what you have been exposed to during your tenor here.
Different, doesn’t spell out “distrust” in any way, shape or form Andrew no matter how you try and spin it. I can’t emphasize enough how the issue of trust wasn’t addressed, i’m doing this because obviously something you read, that i wrote, was misconstrued as such. And I want to quell that immediately.
You’re dead on with your assessment of corporate America. BAE has purchased two other companies in the past 12 months in addition to this current one, so there’s really no surprise in the outcome of these events, and there’s little that could take place from here on out that would catch me off guard.
Lastly, when I eventually address trust in this blog, I do hope that you offer your perspective on it. That word in itself holds a lot of value to me, and I don’t use it very often when I describe my relationship of reliances with people.
August 1st, 2008 at 9:45 pm
Well B.Price, I certainly understand where you’re coming from. We all understand the game of big fish and little fish and I surely would hate to think that remembering the 180 degree turn from what was said during the first sale is quivering with fear. If I hit you with a baseball bat and you see me coming at you with a bat later on, you’re going to remember what I did with that bat and plan accordingly. Plain and simple. I’m fairly certain that the survivors of the first lie-off are pretty nervous right now. I’m almost as sure that the ones who came after the sale are oblivious to the fact that change is coming…even if the leadership said “nothing will change”. Put on your seat belt B.Price.
Remember what happened to the Swan? I hear it was one of the first things to go.
August 6th, 2008 at 1:54 am
I was with one company for almost 10 years and we were bought or sold and had about 4 name changes.
I hope this new venture of theirs doesn’t mean more layoffs in your division.