McLean, Va.-based Science Applications International Corp. (SAIC) announced March 1 that it has entered into a definitive agreement to acquire intelligence community market leader Scitor Corp., based in Reston, Va., for $790 million in an all-cash transaction from private equity firm Leonard Green & Partners.
The SAIC Board of Directors has approved the transaction, which is expected to close in May 2015 and is subject to customary closing conditions.
“The acquisition of Scitor unites two great companies with premier workforces making a profound difference for customers,” SAIC CEO Tony Moraco said. “Scitor is a recognized market leader with long-standing customer and industry relationships within the intelligence community and is aligned with SAIC’s market expansion strategy. Operating as one company represents an opportunity to create shareholder value by gaining access to new customers and leveraging capabilities from both companies to increase revenues and earnings.”
“The blending of Scitor and SAIC is the logical next step in Scitor’s evolution as we continue to support the increasing needs of our intelligence community and Dept. of Defense customers,” Scitor President Timothy Dills said. “This deal is a rare opportunity to unite two successful companies with shared core values, world-class employees, unbridled entrepreneurial spirit, dedication to customer mission, and complementary talent in the broadest and deepest technical capabilities.”
“I look forward to the opportunities that SAIC will provide in offering increased scale and services to our customers, as well as increased opportunities for our employees,” Dills said.
“First of many private equity transactions to come this year taking advantage of the stronger (M&A and stock) market for larger, higher quality GovCon firms,” KippsDeSanto & Co. Managing Director Robert Kipps said. “This deal in particular was great for SAIC, Scitor and Leonard Green. SAIC re-enters the intel market in a major way. Scitor lands on a reputable larger platform that had minimal overlap and a common employee-oriented legacy. Leonard Green’s patience and strategy pays off.”