Reston, VA-based Leidos Holdings, Inc.announced on December 17 that it has entered into a definitive agreement to acquire privately-owned Dynetics, Inc. for $1.65 billion in cash. The Board of Directors of both companies unanimously approved the transaction.
Dynetics, headquartered in Huntsville,
AL, with offices throughout the United States, is a leading provider of
high-technology, mission-critical services and solutions to the U.S.
Government, with a proven history addressing the nation’s most challenging and
technologically advanced missions. The addition of Dynetics will enhance
Leidos’ leadership position across its Defense, Intelligence, and Civil Groups.
The transaction will also accelerate opportunities within the Leidos
Innovations Center (LInC), the Company’s innovation engine that researches and
develops new technologies and solutions to address the most challenging
customer requirements. Once the transaction is completed, Dynetics will operate
as a wholly-owned subsidiary of Leidos. Dynetics’ Chief Executive Officer will
lead the subsidiary and report directly to Leidos’ Chief Executive Officer.
“Dynetics is an innovative
company with a talented team that will deepen our identity as a national
security systems provider and enhance our platform to deliver sustainable,
profitable growth,” said Leidos Chairman and CEO Roger Krone.
“The addition of Dynetics will significantly increase our capabilities for
rapid prototyping and agile system integration and production, enhancing our
overall offerings and services to customers. Through the LInC, Leidos develops
groundbreaking solutions leveraging a wide range of technologies. Dynetics will
further accelerate those efforts, including in hypersonics, space solutions,
autonomy and advanced sensors. With Dynetics, we will build on our existing
relationships with key U.S. Government customers, particularly in strategically
important Huntsville, Alabama. This transaction is projected to be
immediately accretive to revenue growth, EBITDA margins, and non-GAAP EPS upon
closing.”
Krone continued, “Dynetics
has a powerful suite of services and solutions and an outstanding team of
employees driving its success. Together, we will advance our strategy of
solving the toughest scientific and engineering problems by leveraging our
collective strengths, driven by a shared commitment to innovation. We look
forward to welcoming the Dynetics team to Leidos and working together to
continue our united mission of excellence, ethics, integrity, and service to
customers.”
“Dynetics is an innovator and an industry leader,” said David King, Dynetics chief executive officer. “This transaction will enhance and accelerate our ability to serve customers and ensure their future success. As we have continuously stated, Dynetics is more than just a company, we are a true partner, and today’s announcement will allow us to play an even bigger role serving and meeting the evolving needs of important U.S. Government customers. We are excited to be a part of the Leidos team.”
Source: Leidos
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