Engility Holdings [EGL] on Thursday completed its $1.3 billion acquisition of TASC, Inc., adding scale to the professional and technical services supplier in addition to diversifying its customer base across the federal government.
“This transformational acquisition accelerates our growth strategy to further diversify our customer base, enhance our capabilities, add scale to our business, and increase our addressable market,” Tony Smeraglinolo, president and CEO of Engility, said in a statement. “In addition to these strategic benefits, this acquisition offers many compelling financial characteristics including significantly improving our cash flow and adjusted earnings.”
The $1.3 billion deal value includes Engility stock and the net debt it acquired to complete the transaction.
With the deal complete, Engility’s defense business is expected to drop from 61 percent of overall sales in 2014 to about 47 percent now, with the balance of the revenue split almost equally from customers in the intelligence community and federal civilian government. The two companies combined had about $2.5 billion in sales last year.
Engility also said that TASC adds service capabilities in intelligence analysis, space systems architecture analysis, cyber forensics and cyber security, surveillance and reconnaissance operations, data analytics, secure cloud computing and mobile applications, geospatial intelligence, test and evaluation, and enterprise transformation.