Vectrus (NYSE: VEC) has agreed to acquire technology services provider Zenetex for approximately $112M as part of efforts to advance its converged infrastructure strategy and expand its customer base with the addition of new intelligence, defense and foreign military sales clients.
“Zenetex broadens our reach into the Intelligence Community and expands our engineering and digital technology offerings, which is critical as we expand our capabilities to help our clients’ transition to a more instrumented and converged approach to supply chain and facility management,” Chuck Prow, president and CEO of Vectrus and a 2020 Wash100 award winner, said in a statement published Monday.
Zenetex is based in Herndon, Virginia, and provides information technology, integrated logistics, virtual simulation, advanced engineering, research, development, test and evaluation, integrated security protection and maintenance, repair and overhaul services for defense and intelligence agency clients and FMS customers. The company has more than $700M in contract backlog and is expected to record over $200M in 2020 revenue.
Vectrus said it expects the transaction to close in 2020 and to be accretive to its adjusted earnings before interest, taxes, depreciation and amortization margin and adjusted diluted earnings per share in 2021.
Skadden, Arps, Slate, Meagher & Flom, EY, Covington & Burling and Wolf Den Associates served as advisers of Vectrus in the deal, while KippsDeSanto & Co. and Greenberg Traurig advised Zenetex.