SAIC to Buy Intell Contractor Scitor for $790M Cash; Tony Moraco Comments

Tony Moraco
Tony Moraco

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.

You may also be interested in...

Naval Strike Missile

State Dept Clears $300M Sale of Raytheon Technologies-Made Naval Missiles to Romania

The State Department approved Romania's request to buy anti-ship missile systems manufactured by Raytheon Technologies (NYSE: RTX) through a potential $300M foreign military sale transaction with the U.S. government. The company's missiles and defense business would deliver two units of the Naval Strike Missile Coastal Defense System and complementary equipment to Romania's government under the potential deal, the Defense Security Cooperation Agency said Friday.

August Jackson Senior Director Deltek

ArchIntel’s AI in Competitive Intelligence Virtual Event to Discuss Maintaining Competitive Advantage

Artificial intelligence (AI), machine learning (ML) and big data have transformed how businesses conduct competitive intelligence (CI) and how our stakeholders use the developed analyses. Additionally, the federal government has integrated emerging technologies to remain competitive across the defense landscape. To register for ArchIntel’s AI in Competitive Intelligence Virtual Event, as well as view upcoming opportunities, visit ArchIntel’s Event Page.