Roger Krone, Leidos
Leidos has entered into a definitive agreement to acquire managed IT services and cloud solutions provider 1901 Group for $215 million, in a move that will enhance Leidos’ cloud and digital modernization capabilities.
“We are pleased to welcome 1901 Group’s team of digital transformation experts who share Leidos’ commitment to making the world safer, healthier and more efficient through IT,” said Leidos Chairman and CEO Roger Krone.
1901 Group was founded in 2009, and provides cloud, cybersecurity and enterprise-scale digital modernization services and capabilities to the federal IT market. Acquiring the company will allow Leidos to respond to growing customer demands for fixed-priced, utility-based business arrangements, as well as leverage 1901 Group’s IT, cloud factories and fully integrated service delivery platforms.
“1901 Group will provide substantial new capabilities to enhance the value we bring to existing defense customers and position Leidos to meet the growing demand for cloud-based solutions in the defense market,” said Leidos Defense Group President Gerry Fasano.
1901 Group Founder and CEO Sonu Singh said he’s also excited about the company’s future with Leidos, and looks forward to closing the deal.
“We have closely shared values based upon a commitment to our customers, our employees, and our mission of utilizing untapped IT talent across all geographies,” he said. “The opportunities this acquisition will unlock by combining our Enterprise IT Operations Centers and secure FedRAMP platform with the unmatched depth and scale of Leidos sets us up for great success.”
And according to Krone, together, the companies will be better positioned to continue providing critical progressive, agile and secure solutions while navigating growing trends in the IT marketplace.
The deal is expected to close the first quarter of 2021, and Leidos expects to fund the purchase with cash on hand.
Holland & Knight, LLP is serving as legal adviser to Leidos, Pillsbury Winthrop Shaw Pittman LLP as legal adviser to 1901 Group, and Baird as exclusive adviser to 1901 Group on this transaction.
