Leidos Holdings, a renowned Virginia based science and technology leader, reportedly announced that it would be acquiring privately-owned applied science and information technology company, Dynetics, Inc. for $1.65 billion in cash. The Board of Directors of both the companies have unanimously approved the agreement.
Headquartered in Huntsville, Alabama, Dynetics, has offices across the United States and is a leading provider of high-technology, solutions to the U.S. government and mission-critical services, with a history that addresses the nation’s most technologically advanced and challenging missions. The leadership position of Leidos will be enhanced with the addition of Dynetics throughout the Intelligence, Defense and Civil Groups.
The agreement would also generate opportunities within the Leidos Innovations Center, also known as LInC, an innovative engine that researches and develops new solutions and technologies to address the most challenging customer requirements. After the completion of the transaction, Dynetics would function as a wholly owned subsidiary of Leidos. The Chief Executive Officer of Dynetics will be leading the subsidiary and reporting to the Chief Executive Officer of Leidos.
Roger Krone, CEO and Chairman, Leidos, reportedly stated that Dynetics is company with talented team members that would further deepen the company’s identity as a national security systems provider and enhances their platform to deliver sustainable and profitable growth. By addition of Dynetics, the company will significantly increase its ability for rapid prototyping and production and integration of agile system, enhancing the company’s offerings and services to its customers.
Krone further added that through the LInC, the company can develop innovative solutions that could leverage a wide range of technologies. Dynetics would further accelerate those efforts, incorporating space solutions, advanced sensors, autonomy and hypersonics. With this deal the company would build its existing relation with key customers in the U.S. government, particularly from Huntsville, Alabama. The transaction is deemed accretive to revenue growth, non-GAAP EPS and EBITDA margins upon closing.
Dynetics with its powerful suite of solutions and services and an excellent team of employees is driving success. Krone further stated that the company would advance its strategy to solve the toughest engineering and scientific problems by leveraging their collective strengths, fueled by shared commitment to innovation. The company now looks forward to welcoming the team of Dynetics onboard and working together to continue their united mission of ethics, integrity, excellence and serving the customers.
David King, chief executive officer, Dynetics, reportedly stated that the transaction would enhance and accelerate their ability to serve customers and ensure future success. The acquisition will allow them to play a bigger role in serving and meeting the demands of key customers in the U.S. government.