Industry News
IBM Wins Georgia Services Contract
Representatives of IBM announced it won a contract with the state of Georgia to manage its information-technology assets, as well as its fleet and facilities inventory. IBM also will document and process Georgia's surplus assets and inventory.
As part of the Enterprise Asset Management System project, IBM will implement and integrate software designed by MRO Software of Bedford, Mass. That software, Maximo Enterprise Suite (MXES), will help the state optimize the longevity and productivity of its assets, as well as manage its fleet inventory of more than 21,000 vehicles.
Earlier, the governor's Commission for a New Georgia tagged the state's asset-management program as a source of inefficiency. That board, comprised of business leaders, recommended ways to gain efficiency and reduce costs in certain government agencies.
The commission's fact-finding task force reported that the current processes and programs for managing assets were outdated and inconsistent. It recommended that Georgia shift to a system of 21st Century technologies and management techniques that are proving "best practices" for the private sector and for other states.
A report issued by the commission estimated the state would save more than US$35 million in asset and fleet-management costs over the next four years. The bulk of that -- an estimated $25 million savings -- will be realized just in fleet-management costs during the first year alone.
Funding for the Enterprise Asset Management project was appropriated by the state legislature in the 2005 session.
IBM Corp. earned the top score in a competitive bidding process, based largely on its successes with similar projects in other states and in the private sector.
MRO Software's enterprise asset and service management solutions are used in numerous government agencies and facilities, including the Ronald Reagan Federal Office Building in Washington, D.C., the Pentagon and NASA, among others. The ARC Advisory Group analyst firm has ranked MRO software the market leader in enterprise asset management four years in a row.
In addition to its experience and demonstrated success working with state governments, IBM and MRO Software scored strongly on a plan to train the state's purchasing staff. This effort will result in the state's ability to take over at the end of the year and sustain the system into the future.
The contract is worth an estimated $2.9 million for the eight-month project.
IBM employs more than 7,500 persons in Georgia.
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United Kingdom Awards Lockheed Martin $2.65 Million Contract
The United Kingdom's Defense Procurement Agency awarded Lockheed Martin a US$2.65 million contract to enhance the British Army's Desert Hawk Unmanned Aerial Systems (UAS).
Originally developed by Lockheed Martin as a force protection airborne surveillance system under a U.S. Air Force contract, the Desert Hawk UAS offers autonomous intelligence, reconnaissance and surveillance capabilities, including terrain avoidance and dynamic flight plan re-tasking. It is a lightweight, compact system that requires only two people to operate The U.S. Air Force owns 21 Desert Hawk systems, including 126 air vehicles, which are currently deployed in the Middle East.
Under the UK contract, Lockheed Martin will provide new Desert Hawk systems in addition to upgrading the UK’s existing fleet to the new build standard. Capabilities of the new standard include enhanced plug and play electro-optics, infrared color or black/white electro-optical imager payloads, ground control stations, remote video terminals, field repair kits, and global positioning satellite tracking and location capabilities. The contract also defines provisions for spares and technical support. Future options include electro-optical turrets. The air vehicles are scheduled for delivery to the British Army in March 2006.
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Fujitsu Consulting to Acquire Rapidigm
Representatives of Fujitsu Consulting Inc. and Rapidigm, Inc. announced that the companies have entered into a Definitive Agreement whereby Fujitsu Consulting will acquire Rapidigm, a Pittsburgh, PA-based privately-held information technology consulting and integration firm with offices in 22 major metropolitan markets in the United States and offshore development centers in India. The transaction is expected to close within 45 days, subject to various closing conditions and regulatory clearance.
The addition of Rapidigm will significantly increase Fujitsu’s national IT consulting and integration capacity – which is focused on application development, deployment and management – and will provide incremental offshore delivery capabilities. Key skill areas for Rapidigm include Enterprise Resource Planning (ERP), with practices dedicated to SAP, Oracle and PeopleSoft, business intelligence and custom application development.
Once completed, this acquisition will add approximately 1200 US-based consultants in major markets through the US and another 800 India-based consultants in two developments centers. This will bring the total number of Fujitsu Consulting consultants in North America to over 4900..
Rapidigm’s senior leadership team will remain with Fujitsu Consulting in executive-level positions and will continue to provide day-to-day operational leadership. Rapidigm consultants will remain within their current assignments, providing clients with the assurance of continuity on existing projects.
The financial terms of the acquisition were not disclosed.
Fujitsu Consulting’s growth strategy is focused on enhancing its presence and capabilities in key North American markets and segments, in part, through strategic acquisitions. With the announcement of the Rapidigm transaction, Fujitsu Consulting has now announced five acquisitions over a 15-month period, including Greenbrier & Russel of Chicago, IL, GIM Risk Management of Montreal, QC, BORN Information Services of Minneapolis, MN and Cendera Technologies of Dallas, TX.
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General Dynamics to Acquire Ammunition Producer SNC Technologies Inc.
General Dynamics entered a definitive agreement to acquire SNC Technologies Inc., a wholly owned subsidiary of SNC-Lavalin Group Inc. of Montreal, Quebec, for approximately US$275 million (CAN$315 million). SNC Technologies Inc. (“SNC TEC”) is an ammunition system integrator that supplies small-, medium- and large-caliber ammunition and related products to armed forces and law enforcement agencies in North America and around the world. The company generated US$293 million in revenue in 2005, with EBITDA of approximately US$39.5 million.
The acquisition, which has been approved by the boards of directors of both companies and is subject to Canadian Government approval, as well as other regulatory approvals, will be immediately accretive to General Dynamics. General Dynamics expects the transaction to be completed in the second quarter of 2006.
Headquartered in Le Gardeur, Quebec, SNC TEC is a main supplier of ammunition used by the Canadian Department of National Defence. It also supplies small-, medium- and large-caliber ammunition to the U.S. Defense Department, as well as Australia, Belgium, Denmark, France, Greece, Holland, Hong Kong, Italy, Jordan, Kuwait, New Zealand, Oman, Singapore, Sweden, Thailand, the Philippines, the United Kingdom and the United Arab Emirates. The company also produces pyrotechnics, propellants and explosives for the military; small-caliber training ammunition and related training devices for the military and law enforcement markets. SNC TEC is a member of the North American Technology Industrial Base (NTIB).
SNC TEC employs approximately 1,600 workers at sites near Montreal and Quebec City, Valleyfield and Nicolet, Quebec, as well as Avon, Conn.; Mt. Arlington, N.J.; and Crane Naval Surface Warfare Center, Ind. It will become part of the General Dynamics Ordnance and Tactical Systems business unit, which is a world leader in the manufacture of large- and medium-caliber direct and indirect-fire munitions, bomb bodies and Ball Powder® propellant. The company also manufactures precision metal components; provides explosive load, assemble and pack services for a variety of munitions, tactical missile and rocket programs; and designs and produces shaped charge warheads and control actuator systems.
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KPN Selects Alcatel to Deliver Managed Communications Services
Representatives of Alcatel announced February 21 that KPN has selected an Alcatel Managed Communications Services offering to deliver businesses advanced telephony services. KPN is the first carrier in The Netherlands to offer flexible pay-per-user service to SMBs.
Targeting businesses with 20 to 250 employees, KPN's Zakelijke TelefoonCentrales is a managed IP-PBX offering that is based on a fee of 9,95 euros per user per month. The solution allows businesses to increase or decrease the number of users and services on a monthly basis – ensuring that they pay for only what they need. Since the IP-PBX equipment is owned and operated by KPN, customers can minimize upfront capital expenditures to get the solution up and running. Finally, KPN's customers gain the benefit of a future proof solution that enables them to add new services and technology capabilities as they need them, including the latest in IP telephony.
KPN's managed solution for communication services leverages the Alcatel OmniPCX Office platform, providing a range of advanced telephony capabilities, including standard and advanced IP telephony capabilities, voicemail messaging and mobility.
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Nortel Names George Riedel Chief Strategy Officer
Nortel President and Chief Executive Officer (CEO) Mike Zafirovski announced the appointment of George Riedel as Chief Strategy Officer.
Riedel will report directly to the President and CEO and will be responsible for leading the Company's corporate strategy including business development and mergers and acquisitions. In addition, Riedel will focus on emerging technologies, market opportunities, and strategic partnerships, and will drive all related key decision-making processes.
Riedel joins Nortel from Juniper Networks, where he was vice president, strategy and corporate development leading corporate strategy, business development and mergers and acquisitions. Prior to joining Juniper Networks in 2003, he was a Director at the management consulting firm of McKinsey and Company, where for 15 years he co-led telecom and high-tech practices in North America and Asia. Prior to McKinsey, he was an engineering manager at Exxon Co. USA.
Riedel holds an MBA from the Harvard Business School and a BSME with distinction from the University of Virginia. His appointment is effective February 28, 2006, and he will be based at the Company's headquarters in Toronto.
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Raytheon Names David Wajsgras Chief Financial Officer
Raytheon Company has appointed David C. Wajsgras, senior vice president and chief financial officer, effective March 13, 2006. Most recently, Wajsgras was executive vice president and chief financial officer for Lear Corporation.
In his new position, Wajsgras will direct Raytheon's overall financial strategy. His responsibilities will include financial reporting and controls, merger and acquisition activity, planning and analysis, investor relations, tax and treasury. He will report directly to Raytheon Chairman and Chief Executive Officer William H. Swanson.
Wajsgras joined Lear in September 1999 as vice president - controller, responsible for all Lear's accounting and financial reporting functions. He was promoted to senior vice president and CFO in January 2002 and executive vice president in August 2005. In addition to his financial responsibilities, Wajsgras had strategic and operational oversight of Lear's Interior Systems Division.
Before joining Lear, Wajsgras was corporate controller for Engelhard Corporation in Iselin, N.J. He has also held various financial management positions with Honeywell International, Inc., in Morristown, N.J. Wajsgras is a member of the 3Com board of directors and is chairman of its audit and finance committee.
Wajsgras earned a bachelor's of science degree in accounting from the University of Maryland in College Park and a master's of business administration degree in finance from the American University in Washington, D.C. He is a certified public accountant and a member of the Financial Executives Institute, the Corporate Executive Board and the Manufacturer's Alliance/MAPI, an education and research organization.
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EDS Names Vargo and Haubenstricker Interim Co-Chief Financial Officers
Representatives of EDS said the company has named Ron Vargo and Tom Haubenstricker interim co-chief financial officers, effective March 15, 2006. They will share the functions currently performed by Bob Swan, who will be leaving the company on that date.
Vargo and Haubenstricker, who will report directly to EDS Chairman and CEO Mike Jordan, will also remain in their respective current roles as treasurer and vice president of finance administration.
Prior to joining EDS in 2004, Vargo served as Corporate Treasurer and vice president of Investor Relations for TRW, Inc. Vargo began his career with General Electric, serving in a number of auditing and financial management positions. He advanced through a number of assignments in treasury, business development, and general management at The Standard Oil Company (subsequently British Petroleum) before joining TRW in 1991. Vargo holds an MBA from Stanford University and a bachelor’s degree in economics from Dartmouth College.
A 21-year EDS veteran, Haubenstricker currently has responsibility for Corporate Financial Planning and Analysis and Corporate Business Development. He has previously served as vice president of Strategic Planning and Business Development and director of Financial Analysis and Reporting. He has played an integral role in EDS’ business planning and has led all recent activities in the area of acquisitions and divestitures. Haubenstricker holds a bachelor’s degree in business administration from Central Michigan University.
