Defence contractor offers £538 million for Detica

by Editor 7/29/2008 3:51:00 PM
BAE Systems, Europe's biggest defence contractor, has made an offer to acquire business and technology consultancy Detica at 440 pence a share. The price represents a premium of 57 percent to the company's 281 p closing share price on the day before the acquisition rumours emerged.

Detica is a leading data security group in Europe that specializes in IT security, technology to counter threats to public and national security, and data protection for government bodies – Ministry of Defence among others – as well as businesses in the private sector. If the deal with BAE Systems goes through, it will signify further expansion on the U.S. market for the Detica Group. BAE Systems, on the other hand, will fulfill its immediate goal, which is to establish a UK security business. The defence contractor believes that the UK government will be spending about £3 billion in the sector by 2011.

Detica was founded three decades ago as a software service provider to U.S. space agency NASA. Today, it has more than 1,500 employees. Its clients include both the British and American government, which earns the IT services leader more than 60 percent of its revenue.

The Detica Group announced its revenue for the first quarter to June 30 and is off to a good start this year, having chalked a 14 percent revenue growth. The company's expectations for this financial year have not changed as it still sees solid demand for its services, especially in the government sector. Find the latest job opportunities at Detica on our IT consultant job board.

BAE Systems' leading position in the defence sector was recently acknowledged by the U.S. Army, whent he contractor was honoured with two Top Ten Greatest Inventions Awards by the U.S. Army at the sixth Annual U.S. Army Top Ten Greatest Invention awards.

“This recognition shows our strong relationship with the U.S. Army and BAE Systems’ ongoing commitment to innovation. We will continue to offer new products to our soldiers and marines, ensuring that those who protect us are protected with the newest and latest technologies,” said Scott Leitch from BAE Systems Land and Armaments unit.

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