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General Dynamics

(GD) - Get General Dynamics Corporation (GD) Report

agreed to acquire government technology contractor



for $55 a share in cash, or about $2.2 billion.

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Anteon, of Fairfax, Va., employs about 9,500 people and sells system integration services to the U.S. government. The company specializes in systems for national defense, intelligence, emergency response and other government missions. Anteon expects to do $1.72 billion in sales this year and has a backlog of $6.6 billion.

General Dynamic said the acquisition will be immediately accretive to its earnings. The deal has been approved by the boards of both companies and is expected to close in the second quarter of 2006 pending the approval of Anteon shareholders.

"This superb company significantly strengthens the ability of our Information Systems and Technology group to provide a broad menu of seamless information technology services to defense, intelligence and homeland security customers," General Dynamics said.

Anteon closed at $40.77 Tuesday. It was recently up $13.58, or 33%, to $54.35.

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