Defense contractor General Dynamics Corp. said Wednesday it agreed to buy Anteon International Corp. for about $2.1 billion in cash, in a move to expand its technology, training and engineering services to the U.S. military.
The move is the latest in a line of mid-tier acquisitions by defense contractors looking to beef up their technology and intelligence-related business, and to get a larger share of the U.S. defense budget.
Earlier this year Britain’s BAE Systems Plc bought mid-sized U.S. contractor United Defense Industries and L-3 Communications Holdings Inc. bought intelligence firm Titan Corp.
Under the deal, General Dynamics is to pay $55.50 per share for Anteon, or $2.1 billion overall, and assume about $100 million of Anteon debt.
The price represents a premium of more than 36 percent over Anteon’s closing price Tuesday of $40.77 on the New York Stock Exchange.
The deal should immediately add to earnings, General Dynamics said, and is set to close in the second quarter of next year.