Lockheed Martin [LMT] on Monday said it has agreed to acquire Zeta Associates

, which has expertise in software development for communications signals collection and processing, in a deal that will boost its capabilities in C4ISR.

Terms of the deal, which is expected to close in the third quarter of 2014, were not disclosed although Lockheed Martin said it is immaterial to its financial results.

Zeta Associates headquarters in Fairfax, Va. Photo: Zeta Associates
Zeta Associates headquarters in Fairfax, Va. Photo: Zeta Associates

“Zeta Associates’ expertise in cross-platform information collection, analysis and dissemination is an ideal complement to our national security capabilities,” Marillyn Hewson, Lockheed Martin’s chairman, president and CEO, said in a statement. “Adding Zeta to our diverse portfolio strengthens our ability to deliver vital ground, air and space-based intelligence in support of our customers’ most essential missions.”

In addition to strengths in software development for digital signal processing, Zeta also builds hardware such as RF switches, tuners, synthesizers and converters for data capture and conversion.

Zeta is based in Northern Virginia and has about 350 employees. Their primary customers are United States agencies in the intelligence and defense communities. The company will become a subsidiary of Lockheed Martin’s Space Systems segment.

Zeta’s financial adviser on the transaction is Houlihan Lokey.