ASRC Federal has agreed to buy the logistics and supply chain management business of Science Applications International Corp. (NYSE: SAIC) in a cash transaction valued at approximately $350 million.
Both parties expect to close the transaction in the spring of 2023, pending receipt of regulatory clearances and satisfaction of other customary closing conditions, ASRC Federal said Thursday.
ASRC Federal will absorb about 240 employees upon the acquisition’s completion and expects to strengthen its base operations support capability with the addition of SAIC’s logistics and supply chain management arm, which supports the Defense Logistics Agency.
“This acquisition provides another channel for growth by further diversifying our robust set of capabilities,” said Jennifer Felix, president and CEO of ASRC Federal and a previous Wash100 awardee.
Nazzic Keene, CEO of SAIC and a 2023 Wash100 Award winner, said the move marks a milestone in the company’s priority to pursue its strategy and shape its portfolio.
“The agreement allows for seamless transition and continued support for the logistics and supply chain management business and their important customer missions, while enabling SAIC to concentrate resources in our Growth & Technology Accelerant areas of focus,” noted Keene.
She added that enterprise information technology, secure cloud and systems integration and delivery comprise the GTA focus areas and account for more than 30 percent of the company’s revenue.
Jefferies and King & Spalding respectively served as exclusive financial adviser and legal counsel to SAIC in the transaction.
Gibson, Dunn & Crutcher served as ASRC Federal’s legal counsel.