SAIC to acquire Scitor Corporation
Science Applications International Corp. of McLean, VA, announced on March 1 that it has entered into a definitive agreement to acquire intelligence community market leader Scitor Corp. for $790 million in an all cash transaction from private equity firm Leonard Green & Partners. The SAIC Board of Directors has approved the transaction, which is expected to close in May 2015 and is subject to customary closing conditions.
“The acquisition of Scitor unites two great companies with premier workforces making a profound difference for customers,” said SAIC CEO Tony Moraco. “Scitor is a recognized market leader with long-standing customer and industry relationships within the intelligence community and is aligned with SAIC’s market expansion strategy. Operating as one company represents an opportunity to create shareholder value by gaining access to new customers and leveraging capabilities from both companies to increase revenues and earnings.”
Scitor President Timothy Dills said, “The blending of Scitor and SAIC is the logical next step in Scitor’s evolution as we continue to support the increasing needs of our intelligence community and Department of Defense customers. This deal is a rare opportunity to unite two successful companies with shared core values, world-class employees, unbridled entrepreneurial spirit, dedication to customer mission, and complementary talent in the broadest and deepest technical capabilities. ”
“I look forward to the opportunities that SAIC will provide in offering increased scale and services to our customers, as well as increased opportunities for our employees,” Dills added.
The acquisition is highly complementary and aligns with SAIC’s previously communicated strategy to expand into the intelligence community and Air Force markets. Scitor is a recognized leader within the intelligence community, which is an attractive growth market better accessed by an acquisition. This accelerates SAIC’s entry to the intelligence community by providing access to classified contracts, cleared personnel and a robust security infrastructure. The business models and cultures of the two companies are compatible with similar services portfolios, low capital requirements, and steady cash flows.