Feral Jundi

Monday, March 7, 2011

Industry Talk: Ares Management Will Acquire Global Defense Technology And Systems

     It paid nearly $27 million for the Fort Meade-based Zytel and almost $53 million for Signature Government Solutions in Herndon.

     Those purchases “kind of tapped them out, so they really needed some dry powder to continue on the acquisition campaign . . . to maintain their growth and maintain their competitiveness,” Kipp said.

     Hillen said Ares’ backing could potentially accelerate GTEC’s plans to buy more companies as it seeks to grow organically and through acquisitions.

     The company is focusing on high-end technology companies that work in areas like cybersecurity and intelligence, surveillance and reconnaissance. 

     Boy, if you owned any GTEC stock you probably experienced a little bump as a result from this acquisition news. I also included the stock screener for GTEC so you can see for yourself what Ares Management is seeing in Global.

     This company is doing well, and the infusion of private-equity will help them to continue to do well.  Who knows what companies will be in Global’s sights for future purchase, but if you look at their past purchases dealing with cyber security, we probably can deduct that we will see more of the same in the future. Cyber security is huge business, and companies are all jockeying for position in this evolving market.

    Of course the reason I put this up on the blog is because GTEC is also related to Global Strategies Group.(From website: Our former wholly-owned North American subsidiary, Global Defense Technology & Systems, Inc. GTEC, recently completed an initial public offering. GLOBAL continues to be a significant shareholder of GTEC.) Although I don’t think this news will really impact you guys out there too much, unless you owned stock in GTEC. Thanks to a reader for giving me the heads up. –Matt

Private equity firm will acquire GTEC of McLean

By Marjorie CenserMonday, March 7, 2011

McLean-based Global Defense Technology & Systems, a growing contractor primarily focused on intelligence systems and services, announced last week it will be acquired by an affiliate of private-equity firm Ares Management.

The company is the latest to be picked up by private equity, which has played an increasingly large role in the defense industry as it adjusts to anticipated reduced budgets and new Pentagon guidelines on conflicts of interest.

The buy “highlights the capital market renaissance that’s occurred over the last 12 months,” said Bob Kipps, managing director of the McLean-based investment firm KippsDeSanto.

The definitive agreement reached by GTEC, as the company is known, and Ares, based the deal on a share price of $24.25, a nearly 51 percent increase over the company’s $16.08 close the day before the agreement was announced. The total deal value is approximately $315 million, including the assumption of debt and prior to expenses, GTEC said.

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Publications: CRS Report-DoD Use Of PSC’s In Iraq And Afghanistan, February 2011

CRS Report–The Department of Defense’s Use of Private Security Contractors in Afghanistan and Iraq: Backgr…

Friday, March 4, 2011

Cool Stuff: The Control Risks CEO Blog

     Now this is what I like to see!  The smart company is one that can apply effective strategic communications to their specific market.  This is just one tool that can help you to achieve that kind of communications.

     It is also a way for companies to correct the record or express views on a constantly changing market and world. From business owners/bloggers like Tim Lynch of Free Range International to CEO Eeben Barlow of Executive Outcomes fame, blogs are an excellent tool for both that individual to set the record straight or to attract new business for whatever projects they are working on.

     This simple act also gives potential clients and researchers information that will further help them to make better choices or to create more factual publications/articles. Bravo to Control Risks and CEO Richard Fenning for setting this up and this blog is definitely on my Google RSS Reader. –Matt

Hello and welcome to my blog

December 8, 2010

By Richard Fenning

The aim of this blog is to provide you with an informed perspective, as well as personal observations, on the complex and dynamic challenges faced by ambitious organisations operating on a global stage fraught with risk.

This first blog outlines some of the key global trends that will characterise 2011 and beyond. Urbanisation and mega-cities, the worldwide enforcement of anti-corruption legislation and the dominance of China will all have an impact on global business in the year ahead.

It is easy to feel a sense of weariness when contemplating all these challenges. In part, with good reason; the world can seem perilous and increasingly fragile. And at Control Risks, it can be all too easy to see the world through an excessively risk–shaped prism. Like doctors who think the world is full of sick people, and dentists who must feel that there is nothing else to life than crumbling molars, we encounter some of the most hazardous predicaments on a daily basis. So, in this blog I hope to demonstrate that as well as complexity and hostility, our world is more full of opportunity, and occasional bursts of optimism, than ever before in the planet’s history.

Control Risks CEO Bio

Richard Fenning is the Chief Executive Officer of Control Risks. Before becoming CEO, Richard held a number of other roles with Control Risks including Chief Operating Officer, head of the New York office and Business Development Director. He is a regular speaker on how geo-political risk can impact a company’s operations and on the role of the private sector in fragile and post-conflict states. Richard is also a director of emergency medical relief charity, Merlin.

Link to blog here.

Tuesday, March 1, 2011

Publications: Journal Of International Peace Operations, March-April 2011

Monday, February 28, 2011

Maritime Security: UAE Shipping Association Has Reversed Position– Backs The Use Of PSC’s On Vessels

     “We don’t feel protected by the international navies, so we need to take matters into our own hands,” said Scott Jones, first vice president of the UAESA, the leading industry body in the nation. “There is still no vessel that has armed guards on board that has been taken. It seems to be the only way we can feel relatively certain,” he said.

 

     Boy, chalk up another association that has come to grips with reality. Might I also add that these last couple of months, according to some of my readers that are in the know, has been nuts for maritime security companies. Business is picking up to say the least. Although I cannot say for sure how much of an increase there has been because no one is tracking it.  All I can go by is what I am hearing out there.

     With that said, it makes total sense that this market could be seeing a surge.  And with more boats having armed security giving problems to the pirates, there will be those boats without security that will soon become the targets of greedy and dangerous pirates. It is the law of the jungle, and predators will always seek the weakest and easiest prey. Who knows, and this is all just speculation on this particular niche of private security. (we are seeing pirates attack smaller yachts, and violently, which could be considered ‘weaker prey’)

     Also, as a cautionary tale, I think it is important to note the similar evolution of the PSC industry in today’s current war zones.  In the beginning stages, there are always problems.  I suspect as this thing grows bigger, the problems will show their ugly head and will be dealt with accordingly. Although we can be proactive out there and try to apply Jundism and the lessons learned from war zone contracting to this quickly growing maritime security market. All the skeptical eyes of the world will be on the man or woman on the boats with the guns–do well….

     Pirates will also be studying the armed security of boats out there, and planning ways of defeating it.  Because as the ‘unarmed’ prey diminishes, the hungry predators will start targeting weaker ‘armed’ prey.  So if you are a shipping company that has deemed arming your boat with one Glock pistol, and think that is sufficient for ‘arming’ the vessel, you are severely wrong.

     ‘Know yourself, know your enemy’ as Sun Tzu says. Shipping companies must strive to put in place teams on their vessels that are competent, credible and well armed, that can defeat whatever the latest evolution of pirate weaponry, tactics, and strategies are. –Matt

Pirates could face armed seafarers

By Carol Huang

February 28, 2011

The UAE Shipping Association (UAESA) has reversed course to back the use of private security guards aboard commercial vessels as the best way to combat increasingly aggressive Somali pirates.

The U-turn comes as the shipping industry worldwide reconsiders its longtime opposition to carrying weapons at sea. Over the past year, pirate presence has spread across the Indian Ocean. Ransom demands are rising, and hostages are being held captive longer.

Last week, pirates killed four American yachtsmen whom they had taken hostage.

“We don’t feel protected by the international navies, so we need to take matters into our own hands,” said Scott Jones, first vice president of the UAESA, the leading industry body in the nation. “There is still no vessel that has armed guards on board that has been taken. It seems to be the only way we can feel relatively certain,” he said.

That stance would hold for as long as the problem persisted, the organisation said in an announcement earlier this month.

“Until an international solution resolving the governance of Somalia is accomplished, the UAESA will support the stationing of trained professional armed security aboard vessels.”

Dubai port authorities have implemented “clearance procedures” to allow armed guards, it said.

Since many ports around the world ban weapons, many authorities have had to amend or clarify their policies to allow private security escorts to enter.

(more…)

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