

For the second straight reporting period the FOCUS Communications Service Provider Index (CSPI) posted a solid gain. The sector was up 5.6% over the past three months. However, the CSPI also lagged the broader indices again, as the S&P 500 gained 8.5% and the NASDAQ gained 11.0% over the corresponding time frame. The …
The United States Military is increasingly focused on electronic warfare and cyberattack defense. These priorities are reflected in the Department of Defense (DoD) budget as well; 40% of the DoD’s military budget is allocated towards the procurement of military electronics and technologies. A large amount of capital must be spent on the upgrades needed to achieve this level of modernization, a primary driver of demand within this space. The DoD is expected to invest approximately $30B in electronic warfare capabilities over the next 3 years.
The military’s shift from physical fighting to electronic warfare and cybersecurity has created M&A opportunities for industry players, who are growing their companies by acquiring smaller companies with specialized capabilities within the C4ISR space.