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September 28, 2012

Northrop Grumman Announces Acquisition of M5 Network Security

Northrop Grumman (News - Alert) Corp. (NOC) has completed the acquisition of Canberra, Australia-based M5 Network Security Pty Ltd.

M5 Network Security is a provider of cyber-security and secure mobile communications products and services, and advanced analytics to Australian military and intelligence organizations. 

Northrop Grumman is a global security company providing innovative systems, products and solutions in aerospace, electronics, information systems and technical services to government and commercial customers worldwide.

According to Zacks Equity Research, this latest acquisition will enhance the company’s Australian market exposure in the fields of cyber security and communication solutions.

In July, the company reported second quarter 2012 earnings from continuing operations of $480 million, or $1.88 per diluted share, compared to $520 million, or $1.81 per diluted share, in the second quarter of 2011.

Zacks Equity Research said that as of June 30, 2012, the company had 248 million shares outstanding and $1.1 billion remaining under its share repurchase authorization. Moreover, the company’s balance sheet is strong and has maintained healthy cash flows.

According to Zacks Equity Research, this provides substantial financial flexibility and a cushion for improving shareholder value through incremental dividend, ongoing share repurchases and earnings accretive acquisitions.

"We're delighted to welcome M5 Network Security into Northrop Grumman and look forward to delivering proven and advanced cybersecurity and communications solutions to Australian customers," said Linda Mills (News - Alert), corporate vice president and president of Northrop Grumman Information Systems.

The company did not disclose the terms of the transaction.

Recently, TeleCommunication Systems (News - Alert), Northrop Grumman and Lockheed Martin announced that they have teamed to produce highly affordable satellite terminals for protected communications on the move and stationary.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO Austin 2012, taking place Oct. 2-5, in Austin, TX. Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.

Edited by Braden Becker

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