Velocity Systems

Cerberus to Acquire DynCorp for $1 Billion Cash

The ATK purchase of Blackhawk wasn’t the only merger in the news. According to an article by Nathan Becker in the Wall Street Journal, Cerberus Capital Management LLP is purchasing DynCorp International Inc. in a deal estimated at $1.5 Billion (yes, with a “B’). This includes a cash payment of $1 Billion and another $500 Million in debt assumption.

This is still not a done deal. DynCorp has 28 days to solicit alternative proposals from third parties, and the company said it “intends to consider any such proposals.” Additionally, it must be approved by shareholders who will receive $17.55 per share as well as federal regulators. Watchdog groups opposed to the merger claim that this move will bring the company private and less prone to oversight.

While DynCorp is not a manufacturer of Soldier Systems items they do provide a great deal of services to the US Government. You can hardly deploy to theater without running into them in one capacity or another. Of course Cerberus owns Tier 1 Group as well Freedom Group, a conglomeration of companies concentrating in the firearms and tactical business.

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