Hello, Guest!

Tony Moraco, Lynn Dugle Talk SAIC’s Planned Buyout of Engility

Science Applications International Corp. (NYSE: SAIC) announced Monday its plans to acquire Engility Holdings Inc. (NYSE: EGL), in a deal valued at $2.5 billion.

If completed, the all-stock transaction will create the second largest independent technology integrator serving government clients.

“The highly complementary portfolios, combined with our similar cultures, operating models, and histories, make this transaction a compelling combination that enhances the value proposition for our customers, employees and shareholders,” commented Tony Moraco, SAIC’s chief executive officer, and a five-time Wash100 winner.

“Engility’s market-leading expertise in next-generation systems engineering and integration services, particularly among space, federal and intelligence customers, will augment SAIC’s strong mission, engineering and enterprise IT offerings to create a more comprehensive suite of capabilities serving a broader set of customers,” said Lynn Dugle, Engility’s chairman, CEO and president, and a two-time Wash100 winner.

The acquisition, if completed, will double the SAIC’s space portfolio, to reach over $1 billion in total contract value. “We see an opportunity for full lifecycle services in the space arena from architectures and engineering to payload support [to] launch, as well as ground systems,” Moraco said during a media call Monday. The combined entity’s space clients would include NRO, Air Force Space Command, NASA and NOAA.

Besides space, several SAIC market subsystems stand to gain from the acquisition. These include military training and simulation, consisting of a mix of classroom, virtual reality and augmented reality instruction; as well as mission systems and platforms architecture modernization, comprising both technology integration and implementation.

Moraco explained SAIC’s acquisition strategy focused on not only increasing its technical capabilities but also expanding market access to the intelligence, Air Force and health sectors.

In turn, Dugle highlighted the new data analytics capabilities the joint company would enjoy. “How do you revolutionize [IT] services?” she asked, zeroing on the new opportunities facing the organization. We’re well-positioned to modernize everything from targeting and analysis, to next-generation tradecraft, to vehicular modernization and beyond, Dugle said during the call.

Given our ability to embed more high performance computing assets and cyber capabilities in a range of technologies it all “gets exciting really quickly,” Dugle added.

SAIC and Engility expect the deal to close by February 1, 2019, the end of the fiscal fourth quarter. The combined company will add two board members from Engility’s board of directors.

Video of the Day

GovCon Wire Logo

Sign Up Now! GovCon Wire provides you with Daily Updates and News Briefings about Technology

Related Articles