Lockheed aims to buy OAO Corp.

Lockheed aims to buy OAO Corp.

In an effort to capitalize on an expected increase in federal IT spending, Lockheed Martin Technology Services of Cherry Hill, N.J., a subsidiary of Lockheed Martin Corp., has agreed to acquire OAO Corp., a federal IT security contractor in Greenbelt, Md.

The terms of the contract are not yet disclosed. The acquisition must be approved by the Justice Department and reviewed under antitrust laws. If successful, Lockheed will acquire all of OAO's outstanding stock and combine the company with a subsidiary, Lockheed Martin Information Support Services.

Linda Gooden, president of the Support Services division, would be the president of the new organization. The company hopes to take advantage of expectations that the federal IT marketplace will increase to more than $60 billion by 2006 from $36 billion this year, according to an OAO press release.

'By joining with Lockheed Martin, OAO will achieve its strategic vision to position itself to capitalize on the growing opportunities for information technology outsourcing in the public sector,' said Cecile Barker, chairwoman, chief executive officer and founder of OAO Corp.

Lockheed's new organization will likely participate in the company's newest project'building the Joint Strike Fighter, a supersonic aircraft designed for the Air Force, Navy and Marine Corps, and for the United Kingdom's Royal Air Force and Navy.

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