Industry News

Raytheon Awarded $113 Million Contract for U-2 Systems Field Support

Raytheon Company has been awarded a $113 million follow-on Air Force contract for consolidated field support for all sensors, data links and ground systems related to the U-2 reconnaissance aircraft program. This marks the U-2 field support contract's second option.

The Air Force's Warner Robins Air Logistics Center, Robins Air Force Base, Ga., is the contracting agency.

Raytheon provides around-the-clock contractor field service support in support of the U-2 program and the warfighter. The program includes, pre-flight system checks, mission support during flight and post-mission problem analysis. New system installations and upgrades will also be performed under this effort.

The contractor field service contract provides support at the Air Force's Distributed Common Ground Systems (DCGS) sites for all U-2 sensors, ground systems, and data links. Raytheon is the prime contractor for the DCGS 10.2 contract. DCGS is a worldwide distributed, network centric, system-of-systems architecture that conducts collaborative intelligence operations. DCGS provides both physical and electronic distribution of intelligence, surveillance and reconnaissance data, processes, and systems.

Raytheon's major subcontractors on the contractor field service contract are Raytheon Space and Airborne Systems, Lockheed Martin Corporation, L-3 Communications, Goodrich Corporation and Houston Fearless 76 Inc.

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General Dynamics Awarded $16 Million for Development of Advanced Submarine Technologies

General Dynamics Electric Boat has been awarded a $15.6 million U.S. Navy contract to develop advanced submarine technologies for current and future undersea platforms. Electric Boat is a wholly owned subsidiary of General Dynamics.

Under the terms of the contract, Electric Boat will perform Concept Formulation (CONFORM) studies in support of a wide range of technology areas including manufacturability, maintainability, survivability, hydrodynamics, acoustics and materials. Electric Boat also will conduct research and development work in additional areas including manning, hull integrity, performance, ship control, logistics, weapons handling and safety.

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EDS to Acquire Global Enterprise Management Solutions

Representatives of EDS announced it has reached an agreement to acquire Global Enterprise Management Solutions, LP. (GEMS). Based in Irving, Texas, GEMS is a provider of SAP enterprise management and customer relationship management solutions. Financial terms of the transaction were not disclosed. The transaction is expected to close by year-end.

GEMS is a certified SAP value-added partner serving clients primarily in the IT services, assembly/manufacturing, logistics and transportation industries. GEMS offers IT solution development, implementation consulting and solution reselling services for clients looking to deploy SAP.

Key elements of the acquisition would include GEMS' mService Solutions and Accelerated Data Migration tools, which are prepackaged mySAP All-in-One software solutions that can be deployed quickly at client sites. GEMS will also bring to EDS an additional employee base technically skilled at NetWeaver, as well as other business application competencies including ERP, CRM, PLM and SCM.

As part of the acquisition, approximately 150 GEMS employees in Dallas, India and Germany will transition to EDS, including development staff, SAP consultants and technology architects.

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Intel Elects Yahoo! Executive Susan Decker to Board of Directors

Representatives of Intel Corporation announced Thursday that Susan Decker, chief financial officer and executive vice president, finance and administration at Yahoo!, has been elected to serve on Intel's board of directors. The company also announced that John Browne, an Intel director since 1997, is retiring from the board.

Decker is a key participant in determining Yahoo!'s business strategy, has operational responsibilities for Yahoo!'s Marketplaces business unit, and is also responsible for managing and setting all aspects of the company's financial and administrative direction within key functional areas including finance, human resources, legal and investor relations. Prior to joining Yahoo! in 2000, Decker held a number of positions with Donaldson, Lufkin and Jenrette during her 14-year career with the investment banking firm.

Decker received her bachelor's degree from Tufts University with a double major in computer science and economics. She received a master's degree in business administration from Harvard Business School.

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Baldor To Acquire the Power Systems Business of Rockwell Automation, Inc.

Baldor Electric Company markets, designs, and manufactures industrial electric motors, drives and generators and is based in Fort Smith, Arkansas. Representatives of Baldor announced that the compan has signed a definitive agreement to acquire the Reliance Electric Company and certain of its affiliated companies (the "Power Systems business") of Rockwell Automation, Inc.

Baldor will purchase 100% of the equity interest in the Power Systems business for $1.8 billion, comprised of $1.75 billion in cash and approximately 1.6 million shares of Baldor common stock, with a market value of $50 million, based on Baldor's volume weighted average stock price over the prior ten trading days. The transaction is expected to be completed in the first quarter of 2007 and is subject to customary closing conditions and necessary regulatory approvals.

The combined company will be one of the leading North American manufacturers of industrial electric motors and power transmission products. The Power Systems business, which markets its products under the Reliance Electric® and Dodge® brand names, complements Baldor's business in industrial electric motors, drives and generators.

As part of Rockwell Automation, the Power Systems segment generated approximately $1.0 billion in revenue for the 12 months ending September 30, 2006. Baldor expects to realize annual pre-tax synergies of approximately $30 million within three years mainly from the benefits of combined purchasing, working capital management, reduced overhead and increased productivity. The transaction is expected to be approximately $0.10 accretive to Baldor's earnings in the first full year.

Baldor has received a financing commitment from BNP Paribas to support the transaction and expects to finance the $1.75 billion dollar cash consideration through a combination of debt and approximately $350 million of equity or equity-linked securities.

Upon completion of the transaction, total debt is expected be approximately $1.5 billion. Leverage ratios are expected to decline significantly over the next three years to be in line with our peers as cash flow is generated and synergies are realized.

UBS Investment Bank is acting as the sole financial advisor to Baldor in the transaction.

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Toshiba Celebrates Grand Opening of the Toshiba Education Center

Representatives of Toshiba America Medical Systems, Inc. announced the grand opening of the Toshiba Education Center. The center, a $6 million, 4,840 square-foot expansion to the Toshiba Training Academy, provides a full complement of state-of-the-art classrooms and labs equipped with Toshiba's advanced CT, MR and Vascular products, including the Aquilion, Vantage and Infinix systems.

Today, all customer training takes place at the Toshiba Education Center, as well as at institutions across the U.S., while Toshiba Service training continues at the Training Academy.

Toshiba's technologist training is conducted in three phases. Phase One consists of an intensive four-day course at the Toshiba Learning Center. Attendees benefit from clinically qualified instructors and limited class size to ensure individual and in-depth training. Phase Two and Three of the program are conducted onsite at the customer's facility to ensure that classroom knowledge translates into the best patient care possible.

Additionally, Level II physician certification courses are available in cardiac CT through Toshiba's education partners, including Johns Hopkins Bayview Medical Center in Baltimore, University of California, Irvine in Irvine, Calif., University of Florida & Shands in Gainsville, Fla. and CVCTA Education in San Francisco.

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Cisco and Athletics Announce Cisco Field

Representatives of Cisco announced a broad business, marketing and technology agreement in principle with the Oakland Athletics (A's). As a part of the deal, the A's intend to build the world's most technologically sophisticated baseball park in Fremont, Calif. to serve as the new home of the A's. The development is set to include a state-of-the-art baseball-only stadium to be named "Cisco Field," and will feature a Baseball Village complete with residential housing, restaurants, retail shops and other community attractions.

As part of this expected agreement:

• Cisco will purchase the naming rights to the ballpark. This 30-year deal is valued at $4 million annually, with the potential for annual increases based on inflation. This naming rights agreement is transferable at any time. As a part of the naming rights deal, Cisco will be granted an undisclosed amount of guaranteed print, radio and television exposure.
• Separate to this agreement, Cisco will sell its 143-acre parcel of land in Fremont to the A's. The land is intended to become the future site of Cisco Field and a surrounding Baseball Village development. The terms of this land transaction are not being publicly disclosed, as the deal is still subject to final negotiation.
• Cisco will become the "Official Technology Partner of the A's and Cisco Field."
• The A's will purchase Cisco technology to build and support the converged network of Cisco Field that will support data, voice, video and wireless services.
• Cisco will create a Cisco Customer Solutions Center inside the ballpark to showcase how Cisco networking technology is an essential part of 21st century stadia and other public venue operations.
• Cisco will also have rights to utilize Cisco Field for corporate, partner and community events.

This project underscores the A's commitment to creating a new standard for sports venues. As the official technology partner of the A's, Cisco will provide networking and communication products and services to transform the way that the A's team and ballpark operations will be managed. Cisco Field, when completed, will be a state-of-the-art technology showcase featuring an integrated IP network built on Cisco technology, and will be the platform for a multitude of applications that will take the fans' experience to the next level. For example, digital signs could ensure "smart" traffic flow; fans could purchase merchandise or concessions while in their seat by ordering from a mobile device, as well as onsite ticket kiosks to enable fans to upgrade seats in real-time. Luxury suites will have the opportunity to include multi-media amenities for premium video content, and Cisco TelePresence technology may even enable new forms of player-to-fan communications.

The transaction is subject to final negotiation of terms and conditions, and will be subject to a variety of closing conditions, including governmental approvals, site surveys and environmental reviews.