Home / M&A Activity / Nazzic Keene: SAIC Eyes Lead Spot in Federal Digital Transformation Space With Unisys Federal Unit Purchase

Nazzic Keene: SAIC Eyes Lead Spot in Federal Digital Transformation Space With Unisys Federal Unit Purchase

Jeff Brody
Nazzic Keene

Reston, Va.-based contractor Science Applications International Corp. (NYSE: SAIC) has agreed to buy Unisys‘ (NYSE: UIS) federal arm for approximately $1.2B cash in a push to expand digital transformation support for the U.S. government.

SAIC said Thursday it expects to close the transaction by the end of its fiscal 2021 first quarter and to fund the deal with cash on hand plus incremental debt.

The Unisys Federal business — which earned $689M in revenue for the 12 months ended Sep. 30, 2019 — helps federal civilian and defense customers to modernize information technology infrastructure, migrate to cloud computing environments, update enterprise applications and secure IT operations.

PV Puvvada, a six-time Wash100 inductee, has led that unit on a full-time basis since February 2015.

Nazzic Keene, CEO of SAIC and a three-time Wash100 awardee, said the company aims to become a leading digitial transformation services provider to federal agencies through the acquisition.

“This exciting opportunity advances our strategy by building on our modernization capabilities, increasing customer access, accelerating growth and enhancing shareholder value,” Keene added.

The deal is projected to be accretive on SAIC’s earnings before interest, taxes, depreciation and amortization, cash and non-GAAP earnings per share.

Centerview Partners and Sullivan & Cromwell are Unisys’ financial and legal advisers on the business sale process, respectively.

Guggenheim Securities and Citigroup Global Markets serve as SAIC’s financial advisers in the transaction, while King & Spalding acts as its legal counsel. Boutique management consultancy Avascent assisted in the business due diligence and strategic processes.

Check Also

Report: Lockheed Advances in Army’s Precision Strike Missile Competition

Lockheed Martin (NYSE: LMT) emerged as the final contender for the U.S. Army’s Precision Strike Missile prototyping competition, Jane’s 360 reported Tuesday. The PrSM program seeks to develop a precision-strike, surface-to-surface guided missile to replace the Army Tactical Missile System and that can be fired from the M142 High Mobility Artillery Rocket System and M270A1 Multiple Launch Rocket System to neutralize targets at ranges of up to 499 kilometers.

CACI Wins Potential $200M Navy Satcom, C5ISR Support IDIQ

CACI International (NYSE: CACI) has won a potential $199.5M contract to provide satellite communications systems and services to U.S. Navy's joint warfighting special operations around the world.