Lockheed Martin Corporation ( LMT - Analyst Report ) has announced the recent acquisition of CDL Systems Ltd. for an undisclosed amount. Post deal, CDL Systems Ltd. will be acting as a part of the company’s Mission Systems and Training (“MST”) business.

Canadian software engineering firm, CDL Systems Ltd. will focus on building and licensing of vehicle control station software for the unmanned systems with low-cost, interoperable, and open architecture systems. These products have been putting together with several unmanned vehicle platforms.

Lockheed Martin’s acquisition of CDL Systems will offer the company a software solution with significant in-theater experience, which increases its ability to meet up the customers’ needs for mission critical unmanned vehicle capabilities.

Currently, the U.S. Department of Defense (“DoD”) is focusing and investing substantial amount on its unmanned systems, Intelligence Surveillance Reconnaissance, force protection, cyber-security and missile defense. The U.S. DoD is continuously giving orders to several defense-equipment suppliers to strengthen its above mentioned areas.

In October 2012, Lockheed Martin received a 5-year contract, worth $13.5 million, from the Office of Naval Research to explore highly advanced autonomous technologies aboard an unmanned vertical take-off and landing aircraft. In the same month another defense contractor, The Boeing Company ( BA - Analyst Report ) was awarded a cost plus fixed fee contract, worth $10 million, by the U.S. Air Force Research Laboratory. As per the contract, The Boeing Company will supply systems studies, analyses integrations and demonstrations with the unmanned aerial system termed dominator and common smart sub-munition to assess the capabilities of the system.

As of September 30, 2012, Lockheed Martin’s cash balance was $4.7 billion compared with $3.6 billion at the end of 2011. In addition, the company has a $1.5 billion revolving credit facility, expiring in August 2016. This financial strength has enabled the company to make a number of strategic acquisitions in 2012. In the month of November, the company purchased an unmanned aerial systems manufacturer Chandler/May Inc. The transaction value was undisclosed. Chandler/May became a part of the company’s Mission Systems & Sensors business.

We believe these kinds of acquisitions would help Lockheed Martin in performing their tasks in a better way along with fulfilling the government’s demand on supplying specific defense materials. These efforts will subsequently add to the company’s top line in future.

Bethesda, Maryland-based Lockheed Martin Corporation is a global security and aerospace company, engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. With a market capitalization of $29.93 billion, the company has 123,000 full-time employees and also has a short-term Zacks #3 Rank (Hold rating).