Argon ST considering sale or acquisition

DEFENSE

Argon ST considering sale or acquisition

Argon ST, a Fairfax defense contractor, said Tuesday that it will consider options including a potential sale, merger or acquisition.

The company designs and develops sensors, computer systems and software used in intelligence, surveillance and reconnaissance, mostly for the U.S. government. Founded in 2004, Argon ST has roughly 800 employees and reported annual sales in 2009 of $366 million. Argon had $38.5 million worth of contracts with the government in fiscal 2008, with its biggest deals going to the Army and the Navy, according to FedSpending.org, a watchdog Web site.

Defense industry analysts said the company is a prime candidate for a sale because its growth has not been dependent on the wars in Iraq and Afghanistan but on information technology work at the Pentagon that is expected to bring in a steady flow of money.

Argon ST said it hired Stone Key Partners, based in Greenwich, Conn., to help it look at its options. Argon spokeswoman Lori Hughes said the company's executives had no comment.

-- Dana Hedgpeth

INVESTMENTS

Carlyle to form fund with Beijing

Carlyle Group, the world's second-largest private-equity firm, said it will set up a domestic Chinese private-equity fund with the Beijing government.

The fund, to be registered in China's capital, will be established by the Beijing Municipal Bureau of Financial Work and Carlyle Asia Partners, Carlyle said in an e-mailed statement. The yuan-denominated fund will be entitled to "preferential treatment" from the government, it said.