Geopolitical tensions with Russia and China coupled with President Joe Biden’s maintenance of US defense spending drove a record year for mergers and acquisitions in the aerospace and defense industry in 2021. Acquisitions reached $116 billion for the full year, with headline-grabbing deals such as the $8.8 billion takeover of Meggitt by Parker, and Teledyne Technologies’ purchase of Flir, Ltd for $8.2 billion. The mid-market also prospered with deals such as CACI’s acquisition of SA Photonics for $275 million.

As tensions continue throughout the first half of 2022, world leaders agreed on a series of sweeping changes during the recent NATO Summit in Madrid: to deploy a significant number of troops (approximately 300,000) in Europe, to formally invite Finland and Sweden to join the alliance, and to commit at least 2% of their Gross Domestic Product on defense to ensure the readiness of the alliance.