Tuesday, February 22, 2005

Lockheed Martin Acquires The Sytex Group

On Friday Lockheed Martin announced it is buying The Sytex Group for $462 million. Sytex's revenue for 2004 was $425 million, not much less than the asking price. It shows that service companies sell for much less than product companies. According to the cited story, about 85 percent of Sytex’s revenue comes from the US Department of Defense. I guess those contracts are not worth as much in forward-looking terms as one might expect?

1 comment:

Anonymous said...

I guess the phrases "forward-looking" would infere that if a democrat or libertarian were to win the presidency next, the DoD will suffer. Therefore making DoD contractors big losers. Sorry to make this political, but anti-defense and anti-big government parties seem to cause concern for DoD contractors. I work for one so I should know.