Northrop buys Federal Data

Northrop buys Federal Data

Northrop Grumman Corp. plans to acquire Federal Data Corp., a Bethesda, Md., systems integrator and supplier of information systems to the federal government.

The transaction, which the companies expect to complete within 45 days, is valued at $302 million, including $127 million in cash, $157 million in debt to be retired upon closing and $18 million in other transaction costs, Northrop Grumman officials said last week.

Federal Data has systems contracts with the Federal Aviation Administration, the IRS, the National Institutes of Health, and NASA and the departments of Defense, State and Veterans Affairs.

Last year, the company won an eight-year, $260 million NASA contract. VA recently awarded it a $55 million extension on a benefits systems modernization contract.

In a letter to employees, Federal Data chief executive officer Daniel R. Young said the company's services and solutions group and the systems and technology group would likely continue to do business as Federal Data Corp.

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