General Dynamics (NYSE: GD) has definitively agreed to acquire the parent company of healthcare IT firm Vangent, Inc. for approximately $960 million in cash.
General Dynamics expects the move to increase its earnings in 2012.
Arlington, Va.-based Vangent employs 7, 500 workers and specializes in health informatics and information exchange, electronic health records, data analytics and business-processs outsourcing.
Vangent will join General Dynamics’ IT business unit, GDIT. It is majority-owned by Veritas Capital.
General Dynamics’ board of directors and the seller have agreed to the deal, which is expected to close by Oct. 1, 2011, subject to customary closing conditions.
“Vangent is a well-regarded, fast-growing company that will add significant depth and breadth to General Dynamics’ healthcare IT organization, creating a tier 1-level healthcare IT business unit with the scope and scale to compete in markets that are receiving high priority in current funding and entitlement-reform initiatives, ” said Jay L. Johnson, chairman and CEO of General Dynamics.
Previous acquisition coverage:
June 3: Vangent Inc. Reportedly for Sale