Leidos has agreed to acquire power design firm ENTRUST Solutions Group from private equity firm Kohlberg for approximately $2.4 billion as part of efforts to expand its energy infrastructure portfolio.
Reston, Virginia-based Leidos said Monday it expects the deal to conclude by the end of the second quarter of 2026, subject to regulatory approvals and other customary closing conditions.
The transaction will enable Leidos to double the size of its $600 million energy infrastructure engineering business, add new capabilities, and grow its presence in the utility gas and electric generation infrastructure markets.
Leidos plans to use cash on hand, new debt and commercial paper to fund the acquisition.
What Did Leidos CEO Tom Bell Say About the ENTRUST Acquisition?
Leidos CEO Tom Bell said ENTRUST’s engineering capabilities and customer base complement the company’s operations.
“This deal is a bold step forward in support of Leidos’ growth strategy and a national priority to expand America’s energy infrastructure, while improving reliability and resilience against aging systems and extreme weather events,” added Bell, a two-time Wash100 awardee.
Energy infrastructure is one of the five growth pillars underpinning Leidos’ NorthStar 2030 strategy.
Leidos expects the transaction to be immediately accretive to its revenue growth and adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, margin and accretive to non-GAAP diluted earnings per share in 2027.
Citi and Davis Polk & Wardwell serve as financial adviser and legal counsel, respectively, to Leidos in the transaction. PwC acts as the company’s accounting adviser.
What Does ENTRUST Solutions Group Do?
ENTRUST Solutions Group has more than 3,100 employees across over 40 locations in North America and provides engineering, design, consulting, asset integrity, data platforms and automation services to utilities, operators and industrial customers.
ENTRUST CEO Adam Biggam said the transaction will bring together power and energy engineering capabilities to create an end-to-end infrastructure platform.
“Our combined 5,500+ energy professionals will have the resources, technology and reach to tackle the most complex challenges facing the utility and power markets today,” added Biggam.
