Huntington Ingalls Industries has entered into a definitive agreement to acquire Alion Science and Technology for $1.65 billion in cash from Veritas Capital, subject to customary adjustments.
The transaction is expected to close in the second half of 2021 and represents an enterprise value-to-expected 2022 adjusted EBITDA1 multiple of approximately 12.2x. Alion will become part of Huntington Ingalls Industries’ Technical Solutions division.
Alion provides advanced engineering and R&D services to the Defense Department and intelligence community customers, with the U.S. Navy representing about one-third of current annual revenues. Over 80% of its 3,200+ employees have security clearances.
The combination of Alion and the Technical Solutions business broadens HII capabilities.
“The experienced Alion team and the highly complementary solutions and products they provide are consistent with the strategic vision we have articulated for the Technical Solutions business, and we are excited about the significant growth potential this combination represents,” said Andy Green, HII executive vice president and president of Technical Solutions.