U.S. Spending on Cybersecurity, Space Systems May Ease Defense Contractors’ Pain [The Washington Post]

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Major U.S. defense contractors like Northrop Grumman and Lockheed Martin may find some relief from shrinking Pentagon budgets in the form of increased spending on cybersecurity and space-based systems, The Washington Post reports.

“Large prime contractors who may be at risk of losing significant revenue from decreases in major weapon systems are looking to go where the dollars are,” said John Hagan, director of aerospace, defense and government services for BB&T Capital Markets in Reston, Va. “You are seeing a lot of transactions taking place with regard to cyber and space because that’s where the growth is going to be.”

That expected growth is spawning startups in cybersecurity and space-based technologies that could make attractive acquisition targets for larger contractors, the Post reports.