The USA’s largest defence contractor, Lockheed Martin Corporation and Titan Corporation have entered into a definitive agreement for Lockheed Martin to acquire Titan.
The total value of the transaction, including the assumption of about $580 million of Titan debt, is approximately $2.4 billion.
Under the merger agreement, shareholders of Titan may elect to receive $22 per share in cash, an equivalent amount of Lockheed Martin common stock or a combination of the two.
The transaction has been approved by the boards of directors of each company and is expected to close in the first quarter 2004, subject to approval by Titan shareholders, government regulatory reviews and other closing conditions.
San Diego-based Titan Corporation provides command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR), enterprise information technology (IT) and homeland security products and services, with over 11,000 employees in 41 states and 12 countries.
Nearly all of Titan’s sales are to the US Government. For the first six months of this year, Titan reported sales of about $815 million, an increase of 24 percent compared to the first half of 2002.
‘Titan’s outstanding record of sales growth and the quality of its workforce made this transaction very attractive to us,’ said Vance Coffman, Lockheed Martin chairman and chief executive officer. ‘This workforce, together with our highly skilled people, allows us to provide more cost effective and robust solutions to customers of both companies.’