Government services M&A for 2010 finished with 98 transactions closed, a level not reached since 2007 when 99 acquisitions closed. Acquisition focus for the year was predominately on cybersecurity and intelligence targets, accounting for ~40% of total deal volume, followed by civilian (21%), DoD (21%), and diversified services (17%).
After months of budget debate and speculation, President Obama sent the 2012 DoD budget request to Congress on February 14th. The proposed $671 billion budget, which includes $553 billion in discretionary authority for the base budget and $118 billion to support overseas contingency operations (“OCO”), is 5% lower than the 2011 request.
Stocks ended a strong week higher on Friday as the Dow and S&P 500 ended at their highest levels since mid-June 2008. As the U.S. government is more than one-third of the way through its FY11, the Pentagon continues to be restrained by last year’s spending plan.
Stocks ended the week experiencing slight to moderate gains with the Dow gaining nearly 2.3%, the S&P approximately 2.7%, and NASDAQ more than 3.0%.