Leidos has completed its previously announced acquisition of US-based applied research and national security solutions company Dynetics in a deal valued at approximately $1.65bn in cash.
Initially announced in December last year, the acquisition was funded by Leidos using excess cash on hand and $1.25bn of short-term borrowing capacity.
Dynetics has now become a wholly owned subsidiary of Leidos, and its CEO David King will continue to lead the business, reporting directly to Leidos chairman and CEO Roger Krone.
Krone said: “This combination adds innovative capabilities in our targeted growth areas while expanding our secure agile production capabilities, secure agile manufacturing, and increasing our penetration with key customers.
“We are pleased to welcome an outstanding team of 2,300 employees with a shared culture of innovation and technical expertise that will benefit our collective customers and drive our continued success.”
Dynetics provides mission-critical services and solutions to the US Government.
With the combination of capabilities, Leidos’ competitive position will be improved across its defence, intelligence and civil groups. The acquisition represents an opportunity to grow in new segments, including hypersonics, space, and weapons solutions.
Furthermore, the acquisition accelerates opportunities within the Leidos Innovations Center (LInC), for customer-focused research, development, and rapid prototyping.
As part of the deal, Leidos also acquired the 350,000ft² production facility from Dynetics. The facility will allow the firm to pursue the development of innovations from concept stage to production.
In addition, the transaction will enable Leidos to extend relationships with the US Army, Defense Advanced Research Projects Agency (DARPA), Defense Intelligence Agency (DIA), and US Army Rapid Capabilities and Critical Technologies Office.