US Space and defense giant TRW Inc has acquired McLean, Virginia-based systems integration and services company BDM International Inc in a deal valued at nearly $1bn, to boost the reach and scope of TRW’s space and defense business and expand its markets. Under the agreement, TRW will offer cash for all the outstanding shares of BDM at $29.50 a share, and the Carlyle Group, which owns 26% of BDM, will offer up all of its shares. TRW says BDM, which employs some 9,000 people worldwide and had revenues last year of around $1bn, will complement the company’s existing systems integration and information technology business and broaden out its services into the government sector, as well as giving it access to BDM’s customer base in the civil, commercial and international markets. BDM is the developer of the US Securities and Exchange Commission’s EDGAR Electronic Data Gathering Analysis and Retrieval system. It has a strong presence in Europe and the Middle East which the companies say will combine with TRW’s European business to give a strong base for international growth. The companies say the new combined business will look for new applications of their space, defense, information and telecommunications technologies. In addition, BDM has expertise in supply chain management which TRW says will help bring cost savings and efficiencies to its own automotive business. BDM president and chief executive Philip Odeen joins TRW management, and the companies say he will continue to head the BDM operation, reporting to TRW president and chief operating officer Peter Hellman. TRW says the acquisition is likely to be slightly dilutive to its shareholders in the first year, neutral in the second year and accretive thereafter.
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