Northrop Grumman's TASC unit, which advises government military agencies on various defense programs, has been put up for sale and is attracting interest from private equity firms such as The Carlyle Group, KKR and The Blackstone Group. The company has hired Goldman Sachs and Credit Suisse to advise on the sale process. Analysts have valued TASC at up to $2 billion while industry executives have estimated a lower value at approximately $1.4 billion.
Companies providing the government with products and services have long been a target of private equity firms. Since the beginning of 2005, over 100 such companies have received private equity investments, according to the PitchBook Platform. Companies providing aerospace and defense-related products and services have been the most common for PE firms, representing almost half of all the deals in the industry. Although the biggest deal was Carlyle's acquisition of Booz Allen Hamilton's Government consulting division. There are a number of PE firms, such as Veritas Capital and DC Capital Partners, whose primary focus is companies operating in federal government-related sectors.