2024 has seen a number of significant mergers and acquisitions in the government contracting sector. With organizations seeking to expand their portfolios, increase competitive advantage and break into new markets, M&A activity has transformed the industry. From aerospace and defense to cybersecurity and technology innovation, these deals are reshaping the future of GovCon.
Below, we review 10 major GovCon M&A transactions (of many) from this year, analyzing each dealâs value, strategic goals and implications for the industry.
1. Amentum Completes Merger with Jacobsâ Businesses
Amentum finalized its merger with Jacobsâ Critical Mission Solutions and Cyber and Intelligence businesses in September, emerging as a public government technology services leader trading under the ticker symbol âAMTMâ on the NYSE.
With more than 53,000 employees operating in 80 countries, Amentum expects to generate $14 billion in FY 2025 revenue, leveraging this merger to enhance its engineering, defense and intelligence services.
According to Amentum CEO, John Heller, “This transformational combination positions us as a global leader in tackling complex government challenges.”
2. Mastercard Buys Recorded Future for $2.65B
To expand its cybersecurity offerings, Mastercard secured an agreement to purchase Recorded Future, a leading provider of threat intelligence solutions, for $2.65 billion. Recorded Future brings advanced AI-powered analytics to Mastercardâs network, enabling financial institutions to anticipate and mitigate cyber risks.
Mastercardâs Chief Services Officer, Craig Vosburg, stated, âThis partnership not only enhances our cybersecurity services but also ensures greater peace of mind across payment systems and beyond.â
During Bairdâs 2024 Defense and Government Conference, industry intelligence leaders agreed the deal represents a milestone convergence between the intelligence and financial sectors. The acquisition is set to close in Q1 2025.
3. AeroVironment Acquires BlueHalo for $4.1B
AeroVironment entered into a $4.1 billion all-stock deal to acquire BlueHalo, forming a diversified defense technology firm with expertise in domains such as autonomous platforms, space technologies and electronic warfare.
The combined firm, based in Arlington, Virginia, aims to enhance its total addressable market while driving innovation in integrated defense technologies, including counter-unmanned aircraft systems.
The transaction is expected to close in the first half of 2025.
4. CACI Expands into Defense Tech with Azure Summit Buy
CACI added Azure Summit Technology to its portfolio, further strengthening its position as a leading defense contractor. The $1.3 billion acquisition, which closed in October 2024, supports CACI’s goals to deliver cutting-edge solutions in areas such as sensor systems, signal processing and maritime surveillance.
By integrating Azure Summitâs specialized technology, CACI continues to drive innovations that meet evolving defense requirements.
5. IBM Acquires HashiCorp for $6.4B
Aiming to bolster its cloud infrastructure capabilities, IBM agreed to acquire HashiCorp, a major player in cloud and IT infrastructure automation, for $6.4 billion in cash. This deal integrates HashiCorpâs tools for container orchestration and security with IBM Cloudâs offerings, positioning IBM as a leader in enterprise hybrid cloud solutions.
IBMâs investment into HashiCorp aligns with its overall strategy to deepen support for secure and scalable cloud computing in both the private and public sectors. The deal is expected to close by the end of 2024.
6. Cisco Makes $28B Splunk Purchase
Cisco’s completion of its $28 billion acquisition of Splunk marks a significant milestone in the technology sector with substantial implications for the GovCon market. The deal underscores Cisco’s strategic push to enhance its position in cybersecurity and data analytics, two critical areas for government contractors managing advanced IT and operational systems.Â
Splunk’s extensive expertise in security information and event management, coupled with Cisco’s global infrastructure solutions, is expected to create a powerful synergy aimed at addressing increasing threats in the digital space. The transaction was finalized in March.
7. Boeing Acquires Spirit AeroSystems for $4.7B
Boeing announced its acquisition of Spirit AeroSystems in an all-stock deal worth $4.7 billion, bolstered by Spiritâs strong presence in defense and commercial aerospace manufacturing. The transaction, expected to close in mid-2025, aligns with Boeingâs strategy to integrate Spiritâs operations, reducing inefficiencies and enhancing its commercial production systems.
Boeingâs CEO Dave Calhoun, emphasized the integrationâs value, stating, âThis deal ensures greater alignment of safety, quality, and workforce priorities.âÂ
Additionally, the acquisition includes operations that support the Department of Defense, highlighting Boeingâs commitment to strengthening its defense capabilities.
8. Honeywell Purchases CAES for $1.9B
Honeywell acquired CAES, known for its advanced RF technologies and electronic defense solutions, in a $1.9 billion all-cash transaction. This acquisition, finalized in September, expands Honeywellâs defense technology across land, sea, air and space, with a focus on critical systems such as SPY-6 Navy Radar technology and counter-unmanned aircraft systems.
Honeywell Aerospace CEO, Jim Currier, noted, âThis builds on our leadership in defense technologies and fortifies the solutions we offer across military platforms.â
9. Alteryx Sells to PE Affiliates for $4.4B
Private equity firm affiliates Clearlake Capital Group and Insight Partners acquired enterprise analytics and AI software company Alteryx in a $4.4 billion deal, demonstrating the growing importance of scalable analytics and business intelligence tools in GovCon.
Clearlakeâs and Insight Partnersâ expertise is expected to propel Alteryxâs development as a leading platform for delivering actionable insights to government and commercial clients.
The sale was completed in March.
10. BAE Systems Buys Ball Aerospace
BAE Systems completed its acquisition of Ball Aerospace in February, enhancing its engineering capabilities in spacecraft, environmental monitoring systems and advanced payloads. This move strengthens BAEâs role in providing next-generation solutions for aerospace and defense customers, including NASA and the Department of Defense.
This acquisition highlights BAE’s strategy to enable mission-critical technologies across space systems and national security programs.
What These M&A Deals Mean for the GovCon Industry
Despite GovCon M&A deals being relatively flat in 2024, according to market analysts, there were still plenty of major transactions. This activity showcases the industry’s ongoing evolution, where advanced technologies, cybersecurity measures and defense capabilities are reshaping the competitive landscape. Each deal reflects a specific strategy to address emerging challenges while positioning for long-term growth.
These transactions are not just reshaping individual companies â they’re creating new opportunities and changing the dynamics of the entire industry. From integrating AI-powered cybersecurity to pioneering aerospace innovation, the GovCon market is entering a new era of technological sophistication.
Looking Ahead
As these deals finalize in 2024 and beyond, stakeholders across the GovCon ecosystem should monitor the impacts on market consolidation, competitive dynamics and innovation trends. Whether you’re a contractor, investor or analyst, staying informed about these developments is essential to maintaining a competitive edge.
For more insights into the latest GovCon trends, particularly in the defense sector, join the 2025 Defense R&D Summit hosted by the Potomac Officers Club on Jan. 23. Donât miss your chance to hear directly from the government and industry leaders shaping defense technology and innovation.
