Lockheed Martin purchases OAO stock

OAO Corporation and Lockheed Martin Technology Services announced today the signing of a definitive agreement under which Lockheed Martin Technology Services will acquire the outstanding stock of OAO.

OAO Corporation is a provider of information technology solutions to the US federal government. Employing over 2,000 professionals, the company delivers information technology solutions in security-sensitive environments. Revenues in 2000 were in excess of $200 million.

Lockheed Martin Technology Services will combine one of its companies, Lockheed Martin Information Support Services, with OAO to create a new organisation within the business area.

The new company is reportedly positioned for continued growth in the rapidly expanding federal information technology market, which is projected to increase from $36 billion this year to more than $60 billion in 2006.

The transaction is subject to US government approvals, including review under the Hart-Scott-Rodino Antitrust Improvements Act and satisfaction of other customary conditions.

It is expected to close before the end of 2001. Terms of the transaction were not disclosed.