Veritas Inks Deal to Buy Northrop’s Federal IT, Mission Support Services Group

An affiliate of investment firm Veritas Capital has signed a definitive agreement to acquire Northrop Grumman Corp.’s federal IT and mission support services business for $3.4 billion in cash.

The business provides various advanced technology solutions, including cybersecurity, data analytics, cloud and advanced engineering to defense, intelligence, space, civil and health customers. It “has an exceptional track record of delivering innovative technology that addresses the critical needs of its government agency customers,” said Ramzi Musallam, Veritas CEO and managing partner.

“We believe that with our focus, vision and resources, we can create a scaled, technology-enabled services platform that is well-positioned for long-term growth and able to deliver unparalleled support to a broad range of critical government missions,” he added.

Stu Shea, Peraton

Stu Shea, Peraton

This year, the business is slated to generate $2.3 billion in revenue. After the deal closes, Veritas plans to combine it with its portfolio company Peraton, led by Chairman, President and CEO Stu Shea.

The addition of the federal IT and mission support services business bolsters Peraton’s presence in the federal civil and health markets while continuing to add to its capabilities in the mission critical IT domain, Shea said.

“We are confident in our growth trajectory as we leverage Veritas’ industry expertise and serve as the pre-eminent partner to the government,” he added.

The deal is expected to close in the first half of 2021 and is subject to customary closing conditions and regulatory approvals.

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