The defense and government investment banking team of financial services company Raymond James has released a report highlighting the financial performance of several public companies in the government contracting market, recent mergers and acquisitions and major contracts awarded in 2023.
According to Raymond James’ market intel report, there were 89 M&A deals during the fourth quarter of 2023, with the government services sector accounting for 37 percent of the transactions, followed by the government and defense technology sector at 35 percent and the aerospace and space/manufacturing segment at 28 percent.
When it comes to M&A activity breakdown by buyer type, strategic acquirers represented 55 percent and private equity firms accounted for 45 percent of the deals in Q4 2023.
Some of the major M&A deals mentioned in the report are the acquisition of Guidehouse by Bain Capital, EchoStar’s (Nasdaq: SATS) purchase of Dish Network and the move of Palo Alto Networks (Nasdaq: PANW) to buy Talon Cyber Security.
Raymond James cited some of the major defense and government contracts awarded to GovCon companies in the previous year, including an $8.8 billion contract awarded by the U.S. Army to BAE Systems to operate and maintain the Holston Army Ammunition Plant in Tennessee and a $2.1 billion explosive detection system sustainment and logistics support contract TechFlow secured from the Transportation Security Administration.
Also included in the report is a chart showing the stock and financial performances of public companies in the government services, defense technology, IT and space and satellite markets.
Some of those companies are Booz Allen Hamilton (NYSE: BAH), CACI International (NYSE: CACI), ICF (Nasdaq: ICFI), Leidos (NYSE: LDOS), Parsons (NYSE: PSN) and Science Applications International Corp. (NYSE: SAIC).
