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General Dynamics Gets New Defense Department Pact

The 10-year deal is valued at $1.95 billion.
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General Dynamics

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received a $1.95 billion, 10-year contract from the Defense Department to provide intelligence information, command and control equipment and enhancements.

The new contract supports the Army, Navy, Air Force, Defense Intelligence Agency, National Imagery and Mapping Agency, National Reconnaissance Office and other agencies.

General Dynamics said the equipment will be used through the Department of Defense Intelligence Information System and command and control communities to support worldwide intelligence. It includes national security systems, intelligence data handling equipment, local area networks, wide area networks, video systems and communication devices.

The announcement came on the heels of the company's move to acquire

Veridian

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(VNX)

, an information technology company, for $1.2 billion. That deal provided further evidence that General Dynamics is expanding beyond the manufacturing of tanks and ships and pursuing the development of high-tech communication systems that are being emphasized by the Pentagon.

During afternoon trading on the

New York Stock Exchange

, shares of General Dynamics were up $1.33, or 1.8%, to $73.35. The company's stock has increased 30% since mid-April, while the

Dow Jones Industrial Average

has climbed 9%.