New Amentum Opens With Largest 2024 M&A Transaction
Deal News | Apr 02, 2025 | EIN
The article discusses the ongoing trends within the government contracting (GovCon) sector, emphasizing the prominent role of private equity (PE) in merger and acquisition (M&A) activities. Over the past three years, between 62% and 72% of M&A transactions involved PE groups, according to G Squared Capital Partners. This trend is expected to continue in 2024, with two-thirds to three-fourths of transactions involving PE, indicating its significant influence in the market. Despite the dominance of PE, public company acquirers still capture significant attention and are regarded as 'unicorns' due to their rarity and selectivity. Approximately 10% of 2024 acquisitions are led by public companies with substantial federal involvement. Notable public company transactions include General Dynamics IT's acquisition of Iron EagleX and Lockheed Martin's purchase of Terran Orbital, demonstrating strategic expansion in tech and aerospace sectors. Amentum's massive and complex transaction marked a significant event in the industry for 2024. Prospective sellers are advised against heavily relying on public companies for acquisition as these represent a minority in the buyer scenario.
Sectors
- Private Equity
- Government Contracting
- Aerospace and Defense
Geography
- United States – The GovCon industry and the companies mentioned, such as General Dynamics and Lockheed Martin, are prominently based in the United States, indicating a focus on the U.S. government's contracts and defense sector.
Industry
- Private Equity – The article highlights the influence of private equity groups in the government contracting market's M&A activities, showcasing significant investments in company acquisitions and follow-on purchases.
- Government Contracting – The GovCon sector focuses on companies serving government needs, where both private equity and public companies are significant players, particularly in acquisitions and market scaling.
- Aerospace and Defense – This sector is highlighted through specific acquisitions like General Dynamics IT's purchase of Iron EagleX and Lockheed Martin's acquisition of Terran Orbital, demonstrating strategic expansion in defense technologies.
Financials
- 62%-72% – Percentage of GovCon M&A transactions over the past three years involving private equity.
- 10% – Approximate percentage of 2024 GovCon acquisitions led by publicly-traded companies.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Amentum | Target company | Company | Involved in the largest and most complex transaction within the GovCon M&A space in 2024. |
| G Squared Capital Partners | Other (Investment Bank) | Company | Provided insight into the high PE involvement in the GovCon market's M&A activities. |
| General Dynamics IT | Acquirer | Company | Acquired the special operations tech provider, Iron EagleX, marking its first significant acquisition since 2018. |
| Lockheed Martin | Acquirer | Company | Venture investor that acquired Terran Orbital, reflecting strategic expansion within the space systems sector. |
| CACI International | Acquirer | Company | A serial acquirer with notable purchases like Applied Insight, Azure Summit Technology, and Quadrint. |