PAE Inc. has agreed to be acquired by an affiliate of Amentum Holdings LLC in an all-cash deal valued at $1.9 billion.
“The acquisition of PAE complements Amentum’s growth into intelligence and technology services, deepens its relationship with key agencies such as the Department of State, NASA and the Intelligence Community, and meaningfully adds to Amentum’s scale, depth of client relationships and breadth of capabilities,” said Amentum CEO John Vollmer.
The transaction is expected to close by the end of the first quarter in 2022. Once finalized, the acquisition will create one of the largest providers of critical services to U.S. federal and allied governments. The combined companies will hold more than $9 billion in revenue over the last 12 months.
“We look forward to welcoming PAE’s extremely talented employees to the Amentum family,” Vollmer said. “Our complementary capabilities and cultures are expected to propel Amentum to the top of our market by further solidifying our value proposition of employing the best people and offering the most differentiated solutions in support of our clients.”
The acquisition will also bring together capabilities in synthetic training, sensor-based technologies, intelligence, cyber and IT, spectrum and electronic warfare, space operations, environmental solutions, asset management and mission support.
“This strategic combination of two market leading companies will benefit our customers and create increased opportunities for our employees while maximizing shareholder value,” said Charles Peiffer, interim president and CEO of PAE.
The transaction was approved by PAE’s board of directors and is subject to PAE shareholder approval and other customary closing conditions. Cravath, Swaine & Moore LLP acted as legal counsel to Amentum and Arnold & Porter Kaye Scholer LLP acted as regulatory and government contracts counsel. Morgan Stanley & Co. LLC acted as PAE’s financial adviser, and Goodwin Procter LLP; Morgan, Lewis & Bockius LLP; and Nichols Liu LLP acted as legal counsel.
