(Reuters) – Private equity company Carlyle Group (NASDAQ) Inc is currently in talks to acquire U.S. defense contractor ManTech.

Reuters exclusive report in February stated that George Pederson (ManTech founder) was looking at options for his controlling stake, which could include a sale.

Since then, shares of ManTech in Herndon (Virginia) have risen 11%. According to Refinitiv Eikon data, the company’s value was approximately $3.4 billion at Friday’s close.

Bloomberg reported that Carlyle’s deal could be made public as early as next week. However, it said the agreement was not finalized, and negotiations could continue to fall apart.

Reuters reached ManTech and Carlyle but they were unavailable for comment immediately.

ManTech is a defense contractor that provides non-defense services to the Pentagon, intelligence community and other government agencies. There are 9,400 people employed at ManTech.

After the death of Arms Manufacturer, it is uncertain what the future holds for defense sector mergers and acquisitions. Lockheed Martin Corp (NYSE) canceled its February plans to acquire Aerojet Rocketdyne Holdings Inc, a rocket engine manufacturer (NYSE:) Inc. This was despite opposition from U.S. Antitrust Enforcement Officers.

Biden’s administration released a report in which it recommended that the competition in defense industries be increased. They also claimed rapid consolidation created a security risk.