Raytheon Buys Henggeler Computer Consultants for Key Intelligence Contracts
Defense contractor Raytheon has acquired Henggeler Computer Consultants, its third cyber-related acquisition in 2011.
Raytheon acquired Henggeler, based in Columbia, Md., to expand Raytheon's cyber-security portfolio and better meet the needs of its customers in the intelligence community, the defense contractor said Dec. 29. The acquisition has been completed, but Raytheon did not disclose any financial terms of the transaction.
Henggeler's offerings include enterprise architecture, analytics, software and cloud-based services widely used in strategic intelligence systems. Henggeler has been working with government clients in the Washington, D.C., area since 1996. Raytheon expects the Henggeler deal will increase its business dealings with both the intelligence community and the Department of Defense.
"The addition of Henggeler will further strengthen Raytheon's capabilities and competitiveness in cyber-security," said Lynn Dugle, president of Raytheon's intelligence and information systems business.
Henggeler's founder and president, Dick Henggeler, is expected remain on board with Raytheon, but Raytheon did not provide any information about his new role. Raytheon appears to be targeting the consultancy's deep pool of technical talent with this acquisition as the services firm has extensive cyber-security experience with enterprise and intelligence systems. Henggeler is "comprised of highly specialized and proven performers with deep customer relationships," Dugle said.
The Henggeler deal marks Raytheon's second cyber-security acquisition in December and tenth since 2007, beginning with its acquisition of privately held Oakley Networks, a cyber-security and data leakage prevention company. Most of the recent acquisitions were of small privately held companies with an extensive list of classified customers and strong ties with the intelligence and defense communities, and Henggeler appears to be no exception.
On Dec. 5, Raytheon announced it had acquired cyber-security forensics and software provider Pikewerks to focus on insider threat protection, software protection and forensics. Raytheon could provide a range of analysis and investigative services that would help customers defend against sophisticated cyber-security threats, the company said at the time. Pikewerks CEO Michael Ring and its president and founder, Sandy Ring, have both joined Raytheon.
In February, the company completed the $490 million acquisition of Applied Signal Technology, which it announced in December 2010. Applied Signal, a company specializing in the collection and processing of communications signals to support tactical and strategic intelligence missions, was integrated into Raytheon's Space and Airborne Systems business and renamed Raytheon Applied Signal Technology.
In 2010, Raytheon acquired Trusted Computer Solutions, a company with a broad portfolio of cross-domain, operating system and network security products focused on data extraction and analysis as well as information assurance services. Raytheon also paid $334 million for BBN Technologies in 2009 for cyber-security research and development capabilities.
Raytheon's shopping spree is in line with the overall mergers and acquisition activity this year. Global cyber-security spending in 2011 reached $60 billion and is expected to grow 10 percent every year for the next three to five years, according to the "Cyber-Security M&A" report released by PwC recently. While there were several big deals, such as chip giant Intel stepping into the security business by scooping up McAfee for $7.8 billion, many of the security deals in 2011 focused on specific product capabilities, customers or talent.