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?