Leidos Buys Dynetics
Leidos buys Dynetics.
Leidos Holdings buys Dynetics for $1.65 billion.
Dynetics provides high-tech, mission-critical services and solutions to the US Government, tackling the nation's toughest and most technically advanced missions. The addition of Dynetics boosts Leidos' leadership position across its Defense, Intelligence, and Civil Groups. It also speeds up opportunities within the Leidos Innovations Center (LInC), an innovation engine that develops new technologies and solutions to address challenging customer requirements. This deal is an opportunity to grow in new, attractive segments, including hypersonic, space, and weapons solutions. Specifically, Dynetics brings top programs in small glide munitions, hypersonics, and directed energy. Dynetics' rapid prototyping and secure agile manufacturing and systems integration capabilities complement Leidos' current abilities within the LInC. Dynetics' prototyping ability spans radars, air vehicles, weapons, c-UAS systems, space, and avionics. Leidos gains 350,000 square feet of production space, which supports full-cycle product development from concept through assembly, test, and production. The Huntsville headquarters campus environment is close by key customers, with co-located engineering, manufacturing, and test capabilities.
Dynetics strong customer relationships build on Leidos' existing relationships with the US Army, Defense Intelligence Agency (DIA), Defense Advanced Research Projects Agency (DARPA), National Aeronautics and Space Administration (NASA), US Army Rapid Capabilities and Critical Technologies Office (RCCTO), and United States Special Operations Command (SOCOM). Dynetics is building the Universal Stage Adapter for NASA’s Space Launch System and provides structural qualification testing for United Launch Alliance’s Vulcan rocket. Dynetics is also supplying the propulsion system for Astrobotics’ Peregrine lunar lander and is supporting Maxar Technologies in building the Power and Propulsion Element of NASA’s Lunar Gateway space station. Leidos is designing space sensors to track hypersonic weapons, provides engineering and mission support for NASA cargo runs to the International Space Station, and is building a hosted payload for the US Federal Aviation Administration to sharpen GPS signals for pilots.
Roger Krone of Leidos said: 'Dynetics is an innovative company with a talented team that will deepen our identity as a national security systems provider and enhance our platform to deliver sustainable, profitable growth. The addition of Dynetics will increase our capabilities for rapid prototyping and agile system integration and production, enhancing our offerings and services to customers. Through the LInC, Leidos develops groundbreaking solutions leveraging a wide range of technologies. Dynetics will further speed up those efforts, including hypersonics, space solutions, autonomy, and advanced sensors. With Dynetics, we will build on our existing relationships with key US Government customers in strategically important Huntsville, Alabama. This transaction is projected to be at once accretive to revenue growth, EBITDA margins, and non-GAAP EPS upon closing. Dynetics has a powerful suite of services and solutions and an outstanding team of employees driving its success. Together, we will advance our strategy of solving the toughest scientific and engineering problems by leveraging our collective strengths, driven by a shared commitment to innovation. We look forward to welcoming the Dynetics team to Leidos and working together to continue our united mission of excellence, ethics, integrity, and service to customers.’
David King of Dynetics said ‘Leidos is an innovator and an industry leader. This transaction will enhance and speed up our ability to serve customers and ensure their future success. As we have continuously stated, Dynetics is more than a company, we are a true partner, and today's announcement will let us play an even bigger role serving and meeting the evolving needs of important US Government customers. We are excited to be a part of the Leidos team.’
Baird served as financial advisor to Leidos. Skadden, Arps, Slate, Meagher & Flom served as legal advisor.
Jefferies served as financial advisor to Dynetics. King & Spalding served as legal advisor.
Dynetics retained Grant Thornton as accounting advisor and Avascent for strategic industry advisory services.
Leidos Holdings buys Dynetics for $1.65 billion.
Dynetics provides high-tech, mission-critical services and solutions to the US Government, tackling the nation's toughest and most technically advanced missions. The addition of Dynetics boosts Leidos' leadership position across its Defense, Intelligence, and Civil Groups. It also speeds up opportunities within the Leidos Innovations Center (LInC), an innovation engine that develops new technologies and solutions to address challenging customer requirements. This deal is an opportunity to grow in new, attractive segments, including hypersonic, space, and weapons solutions. Specifically, Dynetics brings top programs in small glide munitions, hypersonics, and directed energy. Dynetics' rapid prototyping and secure agile manufacturing and systems integration capabilities complement Leidos' current abilities within the LInC. Dynetics' prototyping ability spans radars, air vehicles, weapons, c-UAS systems, space, and avionics. Leidos gains 350,000 square feet of production space, which supports full-cycle product development from concept through assembly, test, and production. The Huntsville headquarters campus environment is close by key customers, with co-located engineering, manufacturing, and test capabilities.
Dynetics strong customer relationships build on Leidos' existing relationships with the US Army, Defense Intelligence Agency (DIA), Defense Advanced Research Projects Agency (DARPA), National Aeronautics and Space Administration (NASA), US Army Rapid Capabilities and Critical Technologies Office (RCCTO), and United States Special Operations Command (SOCOM). Dynetics is building the Universal Stage Adapter for NASA’s Space Launch System and provides structural qualification testing for United Launch Alliance’s Vulcan rocket. Dynetics is also supplying the propulsion system for Astrobotics’ Peregrine lunar lander and is supporting Maxar Technologies in building the Power and Propulsion Element of NASA’s Lunar Gateway space station. Leidos is designing space sensors to track hypersonic weapons, provides engineering and mission support for NASA cargo runs to the International Space Station, and is building a hosted payload for the US Federal Aviation Administration to sharpen GPS signals for pilots.
Roger Krone of Leidos said: 'Dynetics is an innovative company with a talented team that will deepen our identity as a national security systems provider and enhance our platform to deliver sustainable, profitable growth. The addition of Dynetics will increase our capabilities for rapid prototyping and agile system integration and production, enhancing our offerings and services to customers. Through the LInC, Leidos develops groundbreaking solutions leveraging a wide range of technologies. Dynetics will further speed up those efforts, including hypersonics, space solutions, autonomy, and advanced sensors. With Dynetics, we will build on our existing relationships with key US Government customers in strategically important Huntsville, Alabama. This transaction is projected to be at once accretive to revenue growth, EBITDA margins, and non-GAAP EPS upon closing. Dynetics has a powerful suite of services and solutions and an outstanding team of employees driving its success. Together, we will advance our strategy of solving the toughest scientific and engineering problems by leveraging our collective strengths, driven by a shared commitment to innovation. We look forward to welcoming the Dynetics team to Leidos and working together to continue our united mission of excellence, ethics, integrity, and service to customers.’
David King of Dynetics said ‘Leidos is an innovator and an industry leader. This transaction will enhance and speed up our ability to serve customers and ensure their future success. As we have continuously stated, Dynetics is more than a company, we are a true partner, and today's announcement will let us play an even bigger role serving and meeting the evolving needs of important US Government customers. We are excited to be a part of the Leidos team.’
Baird served as financial advisor to Leidos. Skadden, Arps, Slate, Meagher & Flom served as legal advisor.
Jefferies served as financial advisor to Dynetics. King & Spalding served as legal advisor.
Dynetics retained Grant Thornton as accounting advisor and Avascent for strategic industry advisory services.
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