Arinc sold to Rockwell Collins

August 18, 2013

Cedar Rapids, Iowa-based communications and electronics contractor Rockwell Collins said last week that it has reached a deal to acquire Annapolis-based Arinc, a company that is part of Carlyle Group’s portfolio of investments, for $1.39 billion.

Rockwell Collins said in its announcement that its avionics and cabin technologies are a good fit with Arinc’s networks and services. Arinc’s 2013 revenue is expected to be over $600 million, Rockwell Collins said.

The company also noted that the deal will shift Rockwell Collins’s balance of work to about 54 percent commercial and 46 percent government, a boost in commercial work the company has been long looking to make. In a late 2012 filing with the Securities and Exchange Commission, Rockwell Collins said it has moved from 62 percent government sales in 2010 to 55 percent in 2012.

“Right now, we are focused at trying to accelerate the shift from being overweight in defense to less overweight in defense, and this helps us do that,” said Kelly Ortberg, Rockwell Collins’s president and chief executive, in a call with analysts last week.

Last year, McLean-based Booz Allen Hamilton paid $154 million to acquire the defense systems engineering and support division of Arinc.

SAIC’s Leidos to base headquarters in Reston

Leidos has decided its home will be in Reston Town Center after consideration of 30 to 40 Reston properties and tours of five, said K. Stuart Shea, chief operating officer of McLean-based Science Applications International Corp.

SAIC announced last week that as part of its split into two public companies — a government services business that will retain the SAIC name and a technology contractor dubbed Leidos — Leidos will move 600 employees into about nine floors at 11951 and 11955 Freedom Dr.

The headquarters decision for Leidos is the last major decision looming before the split, which is set to take place before the end of January 2014.

It also ensures that SAIC will remain a locally based company. The contractor earlier this summer announced it is selling its 18-acre Tysons Corner campus — but will lease back one of the buildings for SAIC’s headquarters after the split.

“In my gut, I always knew that we’d both end up in the Northern Virginia area,” Shea said. “A lot of our people live here already.”

CACI profit dips

Arlington-based CACI International reported last week that its quarterly profit dropped nearly 13 percent, while revenue took a roughly 4 percent hit.

The services contractor said profit for the three-month period ended June 30 fell to $37.9 million, or $1.56 a share, down from $43.4 million, or $1.59 a share, in the same period a year earlier. Revenue declined 3.8 percent to $912.9 million.

Kenneth Asbury, CACI’s chief executive, said in an interview that the company anticipated the declines. “It wasn’t flashy,” he said, but “it was how we expected it to be.”

He said CACI is improving its competitiveness and looking at ways to win new work, such as taking on more fixed-price contracts. “Unequivocally, I think we’re heading in the right direction,” he said.

CACI seeking repayment in Abu Ghraib case

Weeks after winning dismissal of a case alleging that CACI International employees directed mistreatment of Abu Ghraib detainees, the company has asked its accusers to pay a $15,580 bill for legal expenses.

Lawyers for the plaintiffs, all Iraqis who served time at the prison, opposed the request in a federal court filing last week.

In July, CACI secured a long-fought victory when a federal judge dismissed the lawsuit against one of the company’s units, deciding that because the alleged abuse happened overseas, the U.S. District Court in Alexandria did not have jurisdiction to hear the case.

Baher Azmy, the attorney for the plaintiffs and legal director at the Center for Constitutional Rights, said CACI’s effort to collect payment “appears to me an attempt to intimidate the plaintiffs.”

However, Michael T. Kirkpatrick, an attorney in the litigation group of nonprofit advocacy group Public Citizen, said a bill of costs is standard court procedure.

“There’s nothing unusual at all about it,” he said, noting that a bill of costs covers only limited expenses, not the entire cost incurred.

CACI declined to comment.

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