June 2011 – You can read more on the
intelligence sector here ...
ERG Partners, founded in 2004, is an independent financial and strategic advisory firm solely focused on the security and intelligence sectors. ERG Partners provides M&A and corporate finance advisory services and assists its clients in the development and execution of their growth strategies. ERG Partners has extensive experience in cross-border and emerging markets transactions with a presence in New York, Washington and London.
Gathering Clouds
The Increasingly Challenging Intelligence M&A Market
Feb 1, 2012 – ERG Partners has issued its latest report on the Intelligence Market. The market appears to have entered a new phase, with the reduced level of demand being driven partly by cyclical factors and partly by structural ones, as government priorities evolve. For these reasons, ERG Partners expects the M&A market to remain challenging in 2012
Latest Market News in the Intelligence Sector
Sotera Completes Acquisition of Potomac Fusion
HERNDON, Va., Jan. 3 (UPI) -- Potomac Fusion Inc., a Virginia company providing data analytics, cyber and visualization solutions, has officially become part of Sotera Defense Solutions.
Potomac Fusion's main customers are the U.S. Department of Defense and agencies in the intelligence community. Its projected revenues for 2011 are $40 million.
Raytheon Acquires Cybersecurity Firm Pikewerks
GARLAND, Texas, Dec. 5, 2011 /PRNewswire/ -- Raytheon Company (NYSE: RTN) has acquired Pikewerks Corporation, a privately held company, to further extend Raytheon's capabilities to defend against sophisticated cybersecurity threats facing customers in the intelligence community, Department of Defense and commercial organizations. Terms of the transaction were not disclosed. The transaction will not materially impact Raytheon's total company sales or earnings per share for the fourth quarter of 2011 or fiscal year 2012.
Sotera acquiring Potomac Fusion
MCLEAN, VA, December 2, 2011 – Sotera Defense Solutions (Sotera) announced that on December 1, 2011, the company entered into a definitive agreement to acquire Potomac Fusion, Inc. Potomac Fusion develops data fusion, data analytics, cyber and visualization solutions for U.S. Intelligence Community (IC) and Department of Defense (DOD) Tactical ISR mission systems operating in a cloud computing environment.
ManTech completes acquisition of WINS
FAIRFAX, Va., Nov. 17 (UPI) -- ManTech International of Virginia completed acquisition of Worldwide Information Network Systems, expanding its cyber and intelligence community IT services.
ManTech purchased WINS for $90 million in cash. It will now become a part of ManTech's Mission, Cyber and Technology Solutions group.
KEYW Issues "Aura" Contract Update
September 26, 2011--HANOVER, Md., Sept. 26, 2011 (GLOBE NEWSWIRE) -- The KEYW Holding Corporation (Nasdaq:KEYW) has been informed that the systems integration contract referred to by KEYW as "Aura" has been awarded to a competitor.
ERGIX data compiled by Matyas
2011: The Intelligence Market Under Pressure
The slowdown of demand for intelligence services has resulted in negative share price performance for publicly traded companies with exposure to the intelligence sector. This has been reflected in the significant decline of the ERG Global Intelligence Index (ERGIX).
The ERGIX has suffered a significant correction in 2011, ending the year down by almost 21%. Only two companies included in ERGIX, namely CACI and CGI, closed the year on a positive note, significantly outperforming the Index.
Developments in the Cyber Security M&A Market
July 25, 2011 – ERG Partners is taking a closer look at the cyber security M&A market.
2011 Performance
Index % Change
127.29 -20.8%
Bill Pratt, a Former U.S. Army Intelligence Officer Joins ERG Partners’ Advisory Board
December 13, 2011 - ERG Partners is pleased to announce that William Pratt, a veteran NGA contractor, a former U.S. Army Intelligence Office and an recognized expert in geospatial and socio-cultural intelligence analysis, joins ERG Partners’s Advisory Board. The appointment is effective immediately.
ERG Global Intelligence Index
In order to better understand developments in the intelligence sector, ERG launched the ERG Global Intelligence Index (ERGIX), composed of a representative mix of U.S. and foreign listed companies.
2012 Perfomance
1/9/12 Week % YTD%
127.75 0.1% 0.1%
ERG’s research quoted in the FT
