Leidos looks to move into space industry
Leidos has committed to the purchase of Dynetics for US$1.65 billion, with the former highlighting its intention to move into the space industry following the purchase.
Dynetics, headquartered in Huntsville, Alabama, with offices throughout the US, is a leading provider of high-technology, mission-critical services and solutions to the US government, and will now operate as a wholly-owned subsidiary of Leidos.
"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 chief executive 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 US 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."
David King, Dynetics CEO, said, "Dynetics is an innovator and an industry leader.
"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 US government customers. We are excited to be a part of the Leidos team."
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