Northrop Grumman unit to acquire Federal Data Corp.

Northrop Grumman Corp. announced plans Wednesday to purchase Federal Data Corp., a Bethesda, Md., systems integrator and computer reseller with a long list of civilian agency clients.

Federal Data will become part of Logicon Inc. of Herndon, Va., a wholly owned subsidiary of Northrop Grumman. Logicon is an information technology services provider with a strong Defense Department presence.

"They fit just like a glove for us," said Herbert Anderson, Logicon's president and CEO. "This gives us an entree into the National Institutes of Health, the Federal Aviation Administration and the Department of Veterans Affairs. It will also enhance what we do with NASA."

"This is a perfect match with the new procurement environment," said Federal Data president Daniel Young.

Logicon values the transaction at $302 million, making the Logicon slice of Northrop Grumman worth about $2 billion.

Anderson said there would "obviously be some duplication" between what Logicon and Federal Data do, he does not expect any layoffs at the moment. With a large number of job openings, Logicon currently "needs more people than I can find," Anderson said said.

It is also unclear whether or not Federal Data will keep its name. "Federal Data has an excellent reputation and name branding," Anderson said.

Acquisition is not new for Federal Data. The Carlyle Group, a private investment firm based in Washington, bought the company in November 1995 intending to invest in it and then sell it for a profit.

The acquisition of Federal Data brings Logicon seat management contracts with the Peace Corps and Wright-Patterson Air Force Base in Ohio, as well as modernization and service contracts with various civilian and military customers.