TrendCobham acquires Argotek
The trend of large defense contractors acquiring smaller companies specializing in IT security continues; the latest: U.K.-based Cobham buy U.S. specialist Argotek; Cobham says Argotek’s expertise will be in demand for upcoming projects such as the U.S. Comprehensive National Cyber Initiative
Priorities within that portion of the 2010 U.S. budget dealing with defense and homeland security shift, and the Obama administration show every intent to spend more on IT security, broadly defined (see “IT Spending to Increase on Obama’s Watch,” 15 May 2009 HS Daily Wire). One consequence of this shift has been the eagerness exhibited by large defense contractors to buy innovative IT security companies (see “Tech Giants Buying Tech Security Companies,” 18 May 2009 HS Daily Wire). These acquisitions will better position these contractors to win the coming IT security contracts.
The latest defense contractors to jump on the IT security acquisition bandwagon is Wimborne, Dorset, U.K.-based Cobham. The company announced the successful purchase of U.S. national security group, Argotek, for a consideration of $36.25 million, $26.25 million of which will be payable in cash.
The privately owned information assurance group will become part of the Cobham Defense Systems Division and will operate under Cobham’s existing U.S. Special Security Agreements.
Argotek provides high-end security services, and it will merge with Cobham Analytics Solutions’ existing National Security Systems Sector to increase the depth of Cobham’s technical offering. According to Cobham, Argotek’s expertise in this field will be in demand for upcoming projects such as the Comprehensive National Cyber Initiative, a government program aimed at strengthening U.S. defenses against electronic attack.
