According to a Reuters report, defense firms Raytheon, Cobham, L-3 Communications, and Science Applications International Corp. have all submitted bids for Applied Signal, which announced in October that it was exploring a sale or merger of the company.
With the reduction in military spending on traditional weapons systems and the expansion of cybersecurity spending, the intense interest in Applied Signal could signal a flurry of cybersecurity acquisitions in the coming years, according to analysts consulted by Reuters.
Two other firms cited as likely acquisition targets are KEYW and Mercury Computer Systems.
KEYW, based in Hanover, Md., collects, processes, analyzes, and secures data for government agencies. While it might become an acquisition target, it has been actively acquiring firms, with the recent acquisitions of Everest Technology and Sycamore US, both providers of cybersecurity to the US intelligence community.
Mercury Computer Systems, based in Chelmsford, Mass., is a provider of digital signal and image processing software and information management systems to the defense market.
The bidding for Applied Signal is similar to the rush to acquire Argon ST, which Boeing eventually acquired for $775 million, Reuters noted. Based in Fairfax, Va., Argon provides IT and cybersecurity products services to the US military.