Leidos announced it has acquired Kudu Dynamics in an approximately $300 million all-cash deal that closed May 23, accelerating its artificial intelligence-enabled cyber capabilities for defense, intelligence and homeland security customers.
The transaction supports Leidos’ strategy in offensive cyber, electromagnetic spectrum operations and vulnerability research.
Founded in 2013, Kudu Dynamics has expanded its work across the Defense Department, with expertise in automated targeting, scalable hardware reverse engineering and non-kinetic effects.
“Kudu’s ability to generate new cyber capabilities with AI perfectly complements our strategy to rapidly grow differentiated offensive cyber technology capabilities,” said Leidos CEO Tom Bell. “This acquisition underlines Leidos’s commitment to continue to build smarter full-spectrum cyber capabilities, so that the U.S. and its allies dominate the cyber warfighting domain.”
The Kudu Dynamics acquisition is Leidos’ first in 2.5 years and aligns with its NorthStar 2030 strategy, which names cyber investment as one of five strategic growth pillars.
“We’re excited to deliver the next level of capabilities to our customers as we bring together the highly innovative cyber professionals and disruptive technologies of Kudu with the scale, resources and experience of Leidos,” said Kudu Dynamics Founder and CEO Mike Frantzen. “In Leidos, we’ve found a partner who shares our ethic of purposeful innovation in support of our nation’s most critical missions.”
Baird served as exclusive financial advisor to Kudu Dynamics on this transaction.