ManTech International (Nasdaq: MANT) has agreed to buy Kforce Government Solutions for $115M in cash in a move to broaden its federal civilian and health footprint, particularly within the Department of Veterans Affairs.
ManTech said Friday it expects the transaction to conclude this month, subject to regulatory approvals and other customary closing conditions, and to be slightly accretive to earnings per share this year.
“This acquisition is consistent with ManTech’s targeted federal civilian expansion strategy. We are pleased to welcome KGS’ talented employees, differentiated capabilities and important customers,” said Kevin Phillips, ManTech president and CEO and a 2019 Wash100 winner.
The acquisition will bring over 500 KGS employees to ManTech’s workforce and allow the latter to add VA’s Transformation Twenty-One Total Technology Next Generation contract vehicle to its portfolio.
KGS is one of the 21 companies that won spots in 2016 on VA’s T4NG program, a potential 10-year, $22B indefinite-delivery/indefinite-quantity contract for services to help VA and other federal agencies carry out information technology modernization efforts.
Fairfax, Va.-based KGS, which recorded approximately $98M in 2018 revenue, provides technology platforms, data management, analytics and transformation management support for defense and federal civilian agency clients.