General Dynamics Drops $1 Billion for Health IT Firm

The Washington Post is reporting that Falls Church-based General Dynamics will acquire Arlington-based Vangent, a major player in the health IT market.

As the Post describes it: "The deal comes as defense contractors, anticipating reduced Pentagon spending, particularly on large equipment, look to diversify. Many are seeking to expand their information technology practices in areas expected to grow, including health care and cloud computing."

The Defense contractor will pay $960 million for Vangent, which last year purchased Buccaneer Computer Systems and Service, an IT firm with contracts with the Food and Drug Administration and the Centers for Medicare and Medicaid Services, the Post said.