Both companies expect to complete the transaction over the next 45 business days pending regulatory approvals, PAE said Monday.
FCi Federal will become a business unit of PAE following the deal’s completion and will continue to operate through its corporate headquarters in Ashburn, Virginia.
PAE CEO John Heller said the acquisition would help advance the company’s strategy to expand its portfolio of services in support of the missions of U.S. government agencies as well as allied and international partners.
PAE became a portfolio company of Los Angeles-based investment firm Platinum Equity after its acquisition by the latter from New York City-based private equity firm Lindsay Goldberg in 2016.
FCi Federal operates with approximately 5,000 employees and provides records management, adjudication support, program management, business process outsourcing, fraud detection, eligibility verification and other national security support services to government customers.
Houlihan Lokey acted as financial adviser to FCi Federal in the deal.