KBR to Buy Centauri for $800M; Stuart Bradie Quoted

KBR to Buy Centauri for $800M; Stuart Bradie Quoted
Stuart Bradie

KBR (NYSE: KBR) has agreed to acquire Chantilly, Va.-based technology services contractor Centauri from Arlington Capital Partners for approximately $800M in cash as part of efforts to strengthen its intelligence and military space businesses and expand its portfolio of defense modernization and cybersecurity offerings.

Houston-based KBR said Wednesday its board of directors and Centauri’s board of managers approved the transaction, which is expected to be finalized in the fourth quarter of 2020, subject to regulatory clearances and other customary closing conditions.

KBR announced early this month that it completed the consolidation of its three business segments into two and the company said it will integrate Centauri into its government solutions segment upon the deal’s completion. KBR will use approximately $300M in cash on hand and $500M of debt to fund the transaction.

“The acquisition of Centauri firmly aligns with our strategy of increasing KBR’s highly technical, mission-focused, synergistic capabilities and enduring customer relationships,” said Stuart Bradie, president and CEO of KBR. “We are excited to welcome and work closely with the Centauri team as we continually drive growth and value-creation for our shareholders and other stakeholders.”

Centauri has 22 offices across the U.S. and more than 1,750 employees providing intelligence, engineering, cybersecurity and other technology platforms and services to national security and intelligence clients. The company has more than $1B in contract backlog and options and its revenue outlook for 2021 is over $700M.

Citizens Capital Markets and Hogan Lovells US LLP respectively served as KBR’s M&A and legal advisers in the transaction. Bank of America acted as co-adviser and Arena Strategic Advisors served as due diligence and transition adviser.

Holland & Knight advised Centauri on the deal’s legal aspect, while Jefferies LLC served as the company’s financial adviser.

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