Northrop Grumman to acquire Australian network security firm

Northrop Grumman Corp. has signed a deal to buy Australian computer and mobile security company M5 Network Security for an undisclosed sum, a move that will broaden its international presence amid dwindling defense sales and uncertainty over Pentagon budget cuts.

“This acquisition enhances our ability to provide innovative, agile and proven cybersecurity and communication solutions to Australian customers,” Wes Bush, Northrop Grumman chairman and chief executive said in a statement. The acquisition will not be material to the defense contractor’s 2012 earnings outlook.

Northrop Grumman’s sales fell 8 percent in the first quarter that ended March 31. Sales for its Information Systems unit, which includes cybersecurity, intel processing and systems engineering services, fell 9 percent, according to a company filing.

The majority of the revenue decreases in that segment came from lower sales from the defense sector, largely stemming from troop cuts and program terminations, the document said.