Veritas Capital has sold McNeil Technologies to AECOM Technology (NYSE: ACM) for $355 million in cash. McNeil provides government national security and intelligence services and generated revenues of $245 million last year. The company has been majority-owned by Veritas since a buyout in July 2004.
107 companies in the Government and Aerospace & Defense industry have been involved in PE deals since the beginning of 2008, according to the PitchBook Platform. Deal activity in the industry followed the general trend for PE deals from 2008 to 2009, dropping from 55 deals to 38. However, unlike the overall trend, it looks like the industry will have to wait on a recovery. With only 18 deals so far this year, it's unlikely 2010 will match last year's deal count. At this point last year, 27 deals had already been completed. Exit activity in the industry has also been sluggish with only 23 exits completed during the same time period. The overwhelming majority, 74%, of those exits have occurred through the sale of the company to a strategic acquirer. Of the 80 investors who have invested in the space, the most active include J.F. Lehman & Company and Metalmark Capital with 4 deals each.