This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

KEYW Holding Prefers a Stealth Style

NEW YORK ( TheDeal) -- Defense technology and cybersecurity company KEYW Holding Corp. continues to scour the M&A field for acquisition targets though you'd never it if you show up for an auction.

KEYW, of Hanover, Md., has made a name for itself in the defense and cybersecurity world due in part to a unique style of dealmaking, a distinctive corporate culture and operating on the cusp of a cutting edge and highly dynamic sector. While the company has gone on a strong acquisition tear for the past two years, it has done so without participating in a single auction. Rather, it has found targets through an extensive network of contacts and long-term partnerships delicately coaxed into existence through the web spun by its executives.

Shares of KEYW added 0.5% to $16.14 in mid-day trading

Industry watchers expect more acquisitions from the company in the near term, and KEYW is certainly well positioned. Cybersecurity breaches at private companies have become alarmingly more frequent -- or at least more publicized -- of late, and firms are scrambling to protect themselves from hostile intrusions by foreign governments, namely China and Iran. Likewise, the U.S. military is ramping up more sophisticated intelligence technology to combat these threats.

Just don't expect KEYW to stray from its M&A playbook.

"Rule No. 1 is they don't attend auctions. Rule No. 2 is, if you are in a veiled process that's not like an auction but it turns out to be an auction, they will eighty-six you from working with them in the future," said defense banker Paul Weisbrich of D.A. Davidson & Co. "They're pretty hardcore. That's very different. Most corporate development guys are like, 'I don't want to talk to you until you have the book.' "

Weisbrich added: "That being said, they're good people, fair people. From a strategic direction they're M&A sophisticates."

KEYW is firm on its auctions ban, distributing a list of rules of doing M&A with the company to every potential client and their adviser, with this prohibition first and last on its list.
1 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
KEYW $6.67 -0.45%
AAPL $92.94 -0.73%
FB $118.10 0.03%
GOOG $698.81 0.45%
TSLA $213.28 -4.20%


Chart of I:DJI
DOW 17,681.26 +30.00 0.17%
S&P 500 2,054.80 +3.68 0.18%
NASDAQ 4,733.98 +8.3410 0.18%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs