Government services provider Perspecta, Inc. announced Jan. 27 it has entered into a definitive agreement to be acquired by Peraton, a Veritas Capital portfolio company, in an all-cash transaction valued at $7.1 billion.
The transaction has been approved by the Perspecta board of directors and is expected to close in the first half of 2021, subject to approval by Perspecta stockholders and other regulatory approvals and customary closing conditions.
After the deal is closed, Perspecta will merge with Peraton, which provides space, intelligence, cyber, defense, homeland security and communication capabilities to federal and commercial entities.
“Today marks the beginning of an exciting new chapter for Perspecta,” said Mac Curtis, chairman and CEO of Perspecta. “This announcement is the culmination of a comprehensive review process. Having considered all opportunities available, the Perspecta Board of Directors is confident this transaction offers the most compelling value creation for shareholders.”
The deal also includes Perspecta stockholders receiving $29.35 per share in cash.
Curtis added that together with Peraton and the flexibility Perspecta will have as a private company supported by Veritas, Perspecta will be well positioned to build on its momentum and continue executing on customer commitments in cyber, digital-transformation and mission-focused solutions.
“Looking ahead, Perspecta remains fully committed to serving our customers with dedication, integrity and excellence and ensuring a seamless transition for our employees,” Curtis added.
Today, Veritas holds approximately 14.5% of Perspecta’s shares outstanding, and the government technology market has been a key focus for Veritas since its inception.
“As a long-time investor in Perspecta and its predecessor companies for over a decade, we have always recognized Perspecta for its market differentiation, leading-edge IP, and focused execution in the government technology space,” said Ramzi Musallam, CEO and managing partner of Veritas.
“Through the combination with Peraton, we have assembled a strong portfolio of top-tier government technology providers with complementary offerings and are confident that the addition of our resources and industry expertise will enable Perspecta to deliver even greater value to its customers and stakeholders,” he continued.
Bob Kipps, managing director of investment bank KippsDeSanto & Co., spoke to Veritas’ recent moves and successes.
“Coming on the heels of its recently announced purchase of IT assets from Northrop, Veritas is once again flexing its industry muscle and demonstrating its focus on strategically building the next industry leader in Peraton,” he said. “This deal highlights the continued momentum in GovCon M&A.”
And ultimately, Perspecta’s highly skilled talent and differentiated technology expertise will complement Peraton’s offerings and enhance its ability to drive innovation, said Stu Shea, chairman, president and CEO of Peraton.
“Together, we will create a top-tier, privately-owned government technology business with a focus on missions of consequence,” he added. “We look forward to welcoming the Perspecta team to Peraton and to building on our growth and success as a proven and trusted partner.”
Schulte Roth & Zabel LLP is serving as legal adviser to Veritas and Peraton; Goldman Sachs & Co. LLC and Stone Key Partners LLC are serving as financial co-advisers; and Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal adviser to Perspecta in connection with the transaction.