DynCorp Goes Private

There are a couple of good articles out there on the sale of DynCorp International to Cerberus Capital Management. One from Forbes outlines the deal's financial gain for deal originator and Veritas founder Robert McKeon, who picks up around $320M+ in the end (after a $47M investment back in 2005, which he immediately recovered through a dividend). The other, from The Street, discusses the bigger picture, including deal details that price the shares at a 49% premium to the market price just before the deal was announced. It also mentions the difficulty DynCorp had as a public stock, with a controversial business and a couple incidents that may have weighed down the share price (not to mention those "pesky regulatory filings").

The Forbes article also implies that Veritas' success with this deal has drawn Cerberus into the sector. Insiders know better, that Cerberus has been trying to do a high-level acquisition in this space for several years, backing IAP's acquisition spree en route to its (unsuccessful) bid on LOGCAP, as well as some aborted attempts in the security services sector.