Lockheed Martin Corporation, like other defense businesses around the nation, has suffered from a business freeze. However, that could be changing nationally as mergers are now stepping up and acquisitions are increasing. Lockheed participated in another deal in June of this year, the fourth such acquisition in recent months, when it purchased the Fairfax, Virginia, company Zeta Associates, Inc., which has approximately 350 employees.
Lockheed is focusing on the purchase of companies in different industry segments, and instead of integrating these companies, they are continuing to operate independently. However, Lockheed is intentional about its purchases and focusing on markets that are growing. In some cases, it is acquiring businesses in order to take advantage of services the companies provide that Lockheed previously would have had to pay a subcontractor to perform.
The most recent acquisition brings a company with technological capabilities for electronic data in order to eliminate the need for an outside provider to perform this needed service. The previous acquisition was a business that designs optical coatings that Lockheed now uses in its aeronautics division. Two prior acquisitions enabled the company to take advantage of the forecasting and satellite launch prep services of the acquired businesses. All of these complement industries in which Lockheed already has an established presence. This helps reduce their overhead as they can use their own providers for necessary services.
As the pace of mergers and acquisitions increases, the assistance of a business law attorney can be invaluable for both the acquiring company as well as the target. Due diligence as well as the negotiation of acquisition documents often require the input of such an attorney.
Source: Albany Business Review, "Lockheed Martin is acquiring another company. Here's what its buying spree is all about", Jill R. Aitoro, June 30, 2014