On Assignment (NYSE: ASGN) has agreed to purchase Fairfax, Virginia-based technology and engineering firm ECS Federal for $775 million from majority owner Roy Kapani and investment company Lindsay Goldberg.
ECS and its current leadership team will continue to operate under its brand name as a division of On Assignment, the information technology and professional services company said Wednesday.
On Assignment CEO Peter Dameris said ECS’ government services offerings will work to augment On Assignment’s posture as an IT and professional services provider.
He also highlighted ECS’ $1.6 billion in backlog and long-term contracts with a five-year average period of performance.
George Wilson, ECS CEO and a 2018 Wash100 recipient, added the acquisition will serve to provide On Assignment a team with resources such as contracts, personnel and past experience with contracting opportunities in the federal sector.
On Assignment noted it has secured a financing commitment of $1.6 billion from Wells Fargo comprising a $200 million revolving credit facility and a $1.4 billion term B loan to fund the acquisition.
The companies expect the deal to close on April 2, after which On Assignment plans to change its name to ASGN Inc.