RESTON, Va., December 17, 2019–Leidos Holdings, Inc. (NYSE: LDOS) (“Leidos”), a FORTUNE® 500 science and technology leader, today announced that it has entered into a definitive agreement to acquire privately-owned Dynetics, Inc. (“Dynetics”), an industry-leading applied research and national security solutions company, for $1.65 billion in cash. The Board of Directors of both companies unanimously approved the transaction.
Dynetics, headquartered in Huntsville, Alabama, with offices throughout the United States, is a leading provider of high-technology, mission-critical services and solutions to the U.S. Government, with a proven history addressing the nation’s most challenging and technologically advanced missions. The addition of Dynetics will enhance Leidos’ leadership position across its Defense, Intelligence, and Civil Groups. The transaction will also accelerate opportunities within the Leidos Innovations Center (LInC), the Company’s innovation engine that researches and develops new technologies and solutions to address the most challenging customer requirements. Once the transaction is completed, Dynetics will operate as a wholly-owned subsidiary of Leidos. Dynetics’ Chief Executive Officer will lead the subsidiary and report directly to Leidos’ Chief Executive Officer.
“Dynetics is an innovative company with a talented team that will deepen our identity as a national security systems provider and enhance our platform to deliver sustainable, profitable growth,” said Leidos Chairman and CEO Roger Krone. “The addition of Dynetics will significantly increase our capabilities for rapid prototyping and agile system integration and production, enhancing our overall offerings and services to customers. Through the LInC, Leidos develops groundbreaking solutions leveraging a wide range of technologies. Dynetics will further accelerate those efforts, including in hypersonics, space solutions, autonomy and advanced sensors. With Dynetics, we will build on our existing relationships with key U.S. Government customers, particularly in strategically important Huntsville, Alabama. This transaction is projected to be immediately accretive to revenue growth, EBITDA margins, and non-GAAP EPS upon closing.”
Krone continued, “Dynetics has a powerful suite of services and solutions and an outstanding team of employees driving its success. Together, we will advance our strategy of solving the toughest scientific and engineering problems by leveraging our collective strengths, driven by a shared commitment to innovation. We look forward to welcoming the Dynetics team to Leidos and working together to continue our united mission of excellence, ethics, integrity, and service to customers.”
“Dynetics is an innovator and an industry leader,” said David King, Dynetics chief executive officer. “This transaction will enhance and accelerate our ability to serve customers and ensure their future success. As we have continuously stated, Dynetics is more than just a company, we are a true partner, and today’s announcement will allow us to play an even bigger role serving and meeting the evolving needs of important U.S. Government customers. We are excited to be a part of the Leidos team.”