CACI International has agreed to acquire LGS Innovations from Madison Dearborn Partners (MDP) and CoVant Management in a deal worth $750m.
The parties involved have signed a definitive agreement for the transaction.
LGS Innovations provides command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) and cyber products and solutions to the US Intelligence Community and US Department of Defense.
MDP business and government software and services team managing director Matt Norton said: “We are proud to have worked alongside CoVant in our successful partnership with LGS Innovations.
“Over the past five years, we evaluated and supported significant R&D investments to grow the business organically, initiatives that we believe have benefited LGS Innovations’ customers and employees and our country.
“We wish the LGS team well as they start a new chapter, and we are confident they will continue to invent new ground-breaking technology products and capabilities as an important growth engine within CACI.”
Since April 2014, MDP and CoVant have invested in LGS Innovations, which was acquired from Alcatel-Lucent and operated as an independent standalone business. LGS Innovations was Bell Labs’ former federal division.
LGS Innovations has nearly 1,300 employees, including more than 900 scientists and engineers.
LGS Innovations chief executive officer Kevin L Kelly said: “We are thankful for the support of MDP and CoVant and their willingness to invest in our growth, and we are excited about the combination of LGS and CACI.
“We believe our market-leading C4ISR and cyber capabilities and culture of innovation, along with CACI’s extraordinary channels to customers, and our shared mission focus will accelerate growth and market penetration for the combined enterprise.”
LGS Innovations received legal counsel from Kirkland & Ellis and Crowell & Moring while Bank of America Merrill Lynch (BofA Merrill Lynch) acted as financial adviser.