Lockheed Martin is set to acquire a health care technology company named Systems Made Simple for an undisclosed sum, the defense giant said Thursday.
The deal is Lockheed’s seventh acquisition of the year and marks another purchase in the health care technology market, which many defense contractors see as a lucrative investment area. McLean-based Booz Allen Hamilton also bought two health care companies recently.
Systems Made Simple is a private company based in Syracuse, N.Y., but also has employees in McLean and Charlottesville. Founded in 1991, the company performs health data analytics and management work for government agencies such as the Department of Veterans’ Affairs and the National Institutes of Health. The company will become a wholly-owned subsidiary of Lockheed Martin.
The purchase of Systems Made Simple is part of Lockheed’s strategy to grow within the “critical” federal health IT market, said Horace Blackman, vice president of Lockheed’s health and life sciences sector.
“We are looking to bolster our capabilities in this space and increase our reach within the market,” he said.
For example, the purchase of Systems Made Simple adds the ability to develop electronic health records for the VA, and improve medical information-sharing between the VA and the Pentagon, Blackman said.
The federal health care market is viewed by many contractors as a bright spot in an otherwise slow federal spending environment. Many government agencies are looking to overhaul their health care systems, including the VA.
Profits at Lockheed rose in the third quarter, but sales decreased slightly from the same period a year ago, the company reported last week. Lockheed’s profits were boosted by higher sales of the F-35 stealth fighter jet and changes in a federal pension law.
More recently, the company made headlines for its announcement of a breakthrough in the design of a nuclear fusion reactor, which Lockheed says it hopes to commercialize in as little as a decade.
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