Science Applications International Corp. (NYSE: SAIC) has agreed to acquire intelligence community contractor Scitor Corp. for $790 million cash from private equity firm Leonard Green & Partners in a push to expand in the IC and Air Force markets.
SAIC expects to close the transaction in May 2015 and for the deal to increase its earnings per share in the first year when excluding transaction costs, the company said Sunday.
The company announced the deal in the same week that Chantilly, Va.-based government services contractor Engility Holdings (NYSE: EGL) closed its deal to purchase TASC for $1.3 billion in stock and create a new company with an estimated $2.5 billion in annual revenue.
SAIC estimates the combined pro forma annual revenue for both SAIC and Scitor to be around $4.5 billion.
“Operating as one company represents an opportunity to create shareholder value by gaining access to new customers and leveraging capabilities from both companies to increase revenues and earnings, ” SAIC CEO Tony Moraco, an inductee into Executive Mosaic‘s Wash100 for 2015.
The transaction gives SAIC access to classified contracts and cleared personnel, SAIC said.
Citigroup Global Markets and Sagent Advisors serve as the respective financial advisers to SAIC and Leonard Green/Scitor, while Arnold & Porter and Latham & Watkins serve as their respective legal counsel.