General Dynamics announced on June 22, 1999, that it would buy three units of GTE’s Government Systems organization, and said the $1.05 billion cash transaction closed on September 1, 1999. The deal covered three named businesses—not all of GTE Government Systems—and GTE’s later annual report recorded a sale amount of $1.03 billion.
Which GTE units did General Dynamics buy?
The sale covered these three businesses, according to General Dynamics’ announcement:
- Communication Systems Division, based in Taunton, Massachusetts.
- Worldwide Telecommunications Services, based in Needham Heights, Massachusetts.
- Electronic Systems Division, based in Mountain View, California.
General Dynamics said the businesses would join its Information Systems and Technology group. In its completion announcement, the company described their work as command, control, communications and intelligence systems; electronic defense systems; communication switching; and information systems for defense, government and industry. Those descriptions reflect the buyer’s account of the acquired businesses.
How much did General Dynamics pay?
General Dynamics’ June announcement and September completion release put the cash purchase price at $1.05 billion. GTE’s 1999 annual report, published in 2000, records $1.03 billion for the sale in its financial discussion. The sources therefore report different amounts; the available figures should be attributed to their respective companies rather than treated as interchangeable.
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What were the businesses worth in operating terms?
At the time of the June 1999 announcement, General Dynamics described the three units as having a $900 million backlog, approximately 6,200 employees and expected 1999 revenue of approximately $1.2 billion. These were announcement-era estimates, not present-day operating figures.
GTE’s annual report gives a different revenue measure: Government Systems generated $1.1 billion through the date of sale in 1999, compared with $1.4 billion in 1998 and $1.3 billion in 1997. The $1.1 billion figure covers revenue through the sale date, while the approximately $1.2 billion figure was the buyer’s expectation for full-year 1999 revenue. They describe different periods and come from different company reports.
What was excluded from the transaction?
GTE’s Information Systems Division, located in Chantilly, Virginia, was not included in the sale to General Dynamics. GTE’s annual report says that this remaining major division was later sold to DynCorp; that transaction closed on December 10, 1999. The distinction matters: General Dynamics bought three units of Government Systems, not every GTE government or information-systems business.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.When was the deal announced and completed?
General Dynamics announced the agreement on June 22, 1999, and reported that it completed the acquisition on September 1, 1999. The two company releases are reproduced by GlobalSecurity.org: the June 22 announcement and the September 1 completion release.
GTE’s annual report provides the seller’s financial account of the sale and the revenue figures: GTE Corporation’s 1999 annual report.
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