Boeing to Acquire Federated Software Group to Enhance Logistics Command and Control, Supply Chain Operations

ST. LOUIS.- The Boeing Company [NYSE: BA] today announced an agreement to acquire Federated Software Group, a St. Louis-based company whose engineering services and software systems help track and distribute equipment and personnel for the U.S. Department of Defense.

Federated Software Group is the integrator for several critical command and control systems and provides engineering services for government contracting and billing systems. The U.S. Air Force Air Mobility Command uses Federated Software Group applications to track the planes, pilots, passengers and cargo involved in airlift and aerial refueling operations. The company’s applications also are used by the U.S. Transportation Command to track and optimize air, land and sea mobility operations around the world.

“With our troops deployed in more than 125 countries around the world, our military and government customers are demanding the kind of enhanced logistical efficiency and supply chain situational awareness that Federated Software Group enables through their world-class engineering and software products,” said Jim Albaugh, president and CEO of Boeing Integrated Defense Systems (IDS). “Adding the Federated Software Group team to Boeing’s expanding Global Services & Support business will ensure that we can put that support where and when the men and women of the armed services need it most.”

Terms of the cash transaction were not disclosed. Once acquired, Federated Software Group will operate within IDS Global Services & Support. This transaction, anticipated to close by the end of the year, does not affect Boeing’s financial guidance.

“The acquisition of Federated Software Group complements our decision to buy Tapestry Solutions, which we announced last month,” said Dennis Muilenburg, president of Global Services & Support. “Both acquisitions are key moves in our strategy to significantly expand our presence in the logistics command and control marketplace with existing, mature contracts and customer relationships.”

Douglas Nelson, Federated Software Group CEO, added, “We are absolutely delighted to be joining The Boeing Company and working with them on their future vision for integrated world-wide command and control and logistics. Our capability to develop and support key command, control and logistics decision support systems will be greatly enhanced by Boeing’s demonstrated ability to deliver large-scale commercial and military products and support services.”

Federated Software Group has approximately 150 employees, with the majority located in St. Louis.