Washington Post. (Washington Insider).(major defense contractors acquiring smaller technology companies)(Brief Article)

Set-Aside Alert, May, 2003

Major defense contractors are on a buying spree, driving up prices for smaller technology companies that provide cutting-edge systems for the military.

The Washington Post reported there have been 31 such acquisitions in the first four months of this year, compared to 65 in all of last year.

The newspaper said some tech firms are selling for nine times their earnings before interest, taxes, depreciation and amortization.