Industry Reports

Published on: 04/18/2019
As we closed these pages last year, we hypothesized that the remarkable pace of Government Information Technology (IT) mergers and acquisitions (M&A) witnessed in 2017 would continue throughout 2018, with the very real possibility that record levels of deal volume and value would be surpassed. This was proven to be the case, with total deal volume up 3% from 2017’s record levels.
Published on: 04/18/2019
Last year the aerospace, defense, government and security sectors saw steady Merger & Acquisition (M&A) activity, with a focus on transactions in technology, the aftermarket, and combinations which create leaders in specific defense segments. Our 2019 ADGS Mergers & Acquisitions Update provides a wealth of sector M&A transaction data.
Published on: 02/11/2019
We are pleased to present our 2018 fourth quarter Cybersecurity Capital Markets, Mergers & Acquisitions (M&A) Update with a look back at some key trends and statistics for the year and recently closed quarter. Industry participants continue striving to deliver solutions to combat the latest threats while the accelerating digitization of our world relentlessly expands attack surface vulnerabilities.
Published on: 11/07/2018
Year-to-date, 66 mergers and acquisitions were announced or closed in the Mapping, Modeling & Simulation industry putting activity on pace to meet or exceed 2017 activity. Strategic companies have been highly active as they leveraged acquisitions to access new customers and disruptive technology. The two largest transactions in 2018—Harris Corporation’s merger with L3 Technologies, Inc.
Published on: 10/24/2018
Fundamentals remain healthy for the C4ISR industry, as the Pentagon’s top leaders continue to emphasize that providing resilient information networks and denying enemies the use of their networks is a top priority. Such conviction is reflected in the growing portion of the defense budget related to C4ISR systems. Following the appropriations measure signed in September that allocated $674 billion in defense spending for FY2019, spending increases are prioritizing capabilities to gain and exploit information in the theater from the tactical to the strategic level. 
Published on: 10/01/2018
Increased capabilities in data tracking, collecting and use are advancing analytic opportunities within the cockpit and have created a need for greater computing power in order to enhance aircraft control, safety, and functionality. In anticipation of resulting demand to upgrade cockpit equipment and instrumentation, leaders in the Avionics market are both acquiring new technologies and spurring organic growth by launching new in-house solutions. 
Published on: 09/30/2018
Year-to-date the volume of M&A activity has declined versus the same period last year. However, this does not reflect the health of the broader Cybersecurity market as industry revenues, venture capital funding, and public company valuations continue to increase. The marquee transaction of the 2018 third quarter was the acquisition of Duo Security by Cisco for $2.3 billion at an eye-popping valuation of 25.0x revenue.
Published on: 09/20/2018
We are pleased to present our 2018 second quarter Cybersecurity Capital Markets, Mergers & Acquisitions Update.In comparison to the first quarter of 2018, there were fewer merger and acquisition (M&A) transactions, but at a higher total transaction value.Capstone Headwaters has observed a parallel trend for M&A activity acrosstheentire middle market as Q2 deal activity dropped by 12.5% relative to Q1, whilethe average disclosed deal value surged by 14.5% during the same period.Within the Cyber security industry,deal activity has been driven by economic growth, demand for cyber s
Published on: 09/06/2018
Merger and acquisition (M&A) activity in the Public Safety Solutions industry has increased 25.6% year-over-year,rising from 39 announced or completed transactions to-date in 2017 to 49 to-date in 2018.  Buyers have targeted companies that can provide structure, insight, and actionable intelligence for the ever-increasing deluge of data that public safety agencies and departments face.
Published on: 07/30/2018
Addressing force readiness is a key priority contained in the FY19 US Defense budget.  The proposed 8.0% increase in US Army spending levels is part of a two year bi-partisan compromise agreement and will gradually benefit providers of simulation and training products and services to the US DoD.1  For many defense contractors in this sector, such demand is welcomed after years of sequestration-motivated spending declines.