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Lockheed purchaseof Sikorsky Aircraftmay lead to spin offor sale of IT servicesBy Steve BittenbenderPrimed by its $9 billion purchase of Sikorsky Aircraftfrom United Technologies Corp., LockheedMartin announced Monday it also would begin astrategic review of its information technology solutionsofferings, saying it could break off the part ofthe company that handles IT for the civilian governmentsectors.“As global security market dynamics shift, thisreview will strengthen our competitive posture,enabling sustained, profitable growth and positioningLockheed Martin to deliver value for customers,shareholders and employees,” Lockheed Chairman,President and CEOMarillyn Hewsonsaid in a press release.Analysts on WallStreet weren’t surprisedby the announcement,addingthat Lockheed is justthe latest companyto do this. SeveralChairman/CEO Marilyn Hewsonmajor defense andgovernment contractors,including SAIC and General Dynamics, havealready announced plans to split their companies orsell operations. Fears of additional rounds of sequestrationas well as likely changes in defense budgetingtriggered the buy, they said.Lockheed is the top Department of Defensecontractor, based on the amount of prime contractsit holds with the Pentagon. In Fiscal Year 2014, thecompany based in Bethesda, MD, held $25.31 billionin award from the DoD, good enough for nearlya nine percent share of the market. United Technologieswas the sixth largest, with $6.17 billion or justover two percent of the department’s purchases.Sikorsky is a major provider of helicopters to theDoD and to other militaries across the world. Someof its products include the MH-60 Black Hawk, theS-76 the MH-60R Seahawk. One of the world’s leadingproviders of military aircraft, Lockheed’s currentofferings include: the F-16 Fighting Falcon, the F-2and the C-130J Super Hercules.Lockheed “is also registering higher foreign salesthat will likely offset a lower defense budget scenarioat home,” Zacks Investment Research said Monday.“Again, the takeover of Sikorsky is a strategic fit forLockheed Martin. The move could prove to be arevenue booster for the prime defense contractoras its top line was thwarted by a shrinking defensebudget.”In addition to its stature as a defense contractor,Lockheed also provides IT services to other govern-Motorola conducts first demonstrationof public safety LTE TechnologyContinued from page 4the information. It also features the Real TimeVideo Intelligence (RTVI) application, which allowsusers to view live video broadcasts on LTEdevices and, when integrated with a mobile solution,allows officers to broadcast live video fromtheir vehicles to other users connected to thesame application.• Motorola Solutions’ WAVE Push-To-TalkSolution (interoperability and secure communications)which allows users to easily select aconversation group, push a button and talk tousers of other LTE devices or devices with othercommunication standards. This solution enablesthe establishment of quick and safe communicationsbetween the different systems, frequenciesand devices used by different security forces andemergency agencies.“Public safety forces need to capture and processlarge volumes of data every day and convertthis data into intelligence to quickly solve or evenprevent incidents,” said Fernando Bonilla, countrymanager for Motorola Solutions in Colombia.“They also need to be sure that their communicationswill not fail in critical moments.Motorola Solutions LTE technology dedicatedto public protection and disaster relief was preciselydesigned to meet their needs.”About Motorola SolutionsMotorola Solutions creates innovative, missioncriticalcommunication solutions and servicesthat help public safety and commercial customersbuild safer cities and thriving communities.For ongoing news, visit www.motorolasolutions.com/newsroom or subscribe to a news feed.ment agencies as well as in other countries aroundthe world. The IT services that do not fall underdefense and intelligence auspices – such as cyberterrorism– will be part of the strategic review.In its press release, Lockheed mentioned thoseoperations likely would be spun off or sold, likelyleaving Lockheed as still a gigantic, but leaner, governmentcontractor. Those operations representedabout $6 billion of the company’s projected 2015sales (overall sales in 2014 was $45.6 billion), butthose areas also employ about 17,000 of its 112,000employees.Now all analysts were bullish on the acquisition.Fitch Ratings noted that the Sikorsky sale was a substantialdeparture from Lockheed’s recent behavior,as it had made just under $1.5 billion in purchasessince 2012. Fitch also noted concerns about budgetcuts at home, but also mentioned the helicoptercompany could help Lockheed meet its goal of improvingforeign sales.Company officials said they expect the Sikorskydeal to close by early next year.Coming UpIn Future IssuesAugust Digital Edition:Technology Focus:Cybersecurity & ConvergenceMarket Focus:Emergency Preparedness/Disaster ResponseSeptember Print Edition:Technology Focus:Mass Notification/Interoperable EmergencyCommunicationsALSO IN SEPTEMBER:EXTRA DISTRIBUTIONAt ASIS InternationalSeminar and ExhibitsSept 28-Oct 1,Anaheim, CAOctober Digital Edition:Technology Focus:Intelligent Video SurveillanceMarket Focus:Building/Faciltiy/InfrastructureProtectionNovember Print Edition:Technology Focus:Intrusion Detection/Perimeter ProtectionMarket Focus:Airport/Aviation SecurityDecember Digital Edition:Technology Focus:Access Control/ID andInsider ThreatsMarket Focus:Digital Yearbook of 2015Homeland Security AwardsWinnersFor GSN Media Kitor Advertising RatesContact PublisherMike Madsen at732-233-8119or by email atmmadsen@gsnmagazine.comJuly/August, 2015 GSN: Government Security News www.gsnmagazine.com 31