Summary of deal:
Raytheon Company (NYSE:RTN) has acquired SI Government Solutions, a provider of proprietary software security solutions to U.S. intelligence and defense customers. Projects include application testing, training, tools and security research for classified and critical infrastructure projects. SI Government Solutions was a 2005 spin-off from Security Innovation Inc. Terms of the transaction were not disclosed.

INPUT's Take:
The bulk of SI Government Solutions' prime work is cost plus R&D for the Air Force according to FPDS data, but the acquisition is for technology capabilities not new customers. In 2007, $427K was obligated to contract # FA865006C8074 out of Wright Patterson AFB for a software protection assessment and next generation software requirement. SI Government Solutions prime contract obligations increased from $98,000 in FY 2004 to $1.1 million in FY 2007.

The acquisition is the second in a row for Raytheon focused on the acquisition of new capabilities. Raytheon's last acquisition was Nov. 12, 2007, with the purchase of Sarcos' robotics arm, a company that develops technologies in the advanced field of micro-electro mechanical systems. Terms of the transaction were not disclosed.

More details of the transaction: Raytheon Press Release