Leidos has acquired Kudu Dynamics in an all-cash transaction worth approximately $300 million as part of a push to rapidly scale artificial intelligence-enabled cyber capabilities for intelligence, defense and homeland security clients.
Leidos said Wednesday Baird acted as Kudu’s exclusive financial adviser in the deal.
Advancing Strategy for AI-Enabled Offensive Cyber
The transaction will enable Leidos to accelerate its strategy for AI-enabled offensive cyber, vulnerability research and electromagnetic spectrum operations.
“Kudu’s ability to generate new cyber capabilities with AI perfectly complements our strategy to rapidly grow differentiated offensive cyber technology capabilities,” said Leidos CEO Thomas Bell.
“This acquisition underlines Leidos’s commitment to continue to build smarter full-spectrum cyber capabilities, so that the U.S. and its allies dominate the cyber warfighting domain,” added Bell, a two-time Wash100 awardee.
At an earnings call in early May, Bell mentioned the acquisition, which he said would enable Leidos to accelerate the cyber pillar in the NorthStar 2030 strategy.
“Our pending acquisition brings additional exquisite cyber capabilities to strengthen our cyber growth pillar. Their expertise in vulnerability research, reverse engineering, exploit development, and the converging cyber electronic warfare markets are squarely in line with our cyber strategy. Our acquisition is focused on the DOD and the intelligence communities with deep roots in DARPA as well,” the chief executive said at that time.
“This delivers to us a unique, additional, active, value-added role in the cutting-edge future of cybersecurity technologies for national security,” added the 2025 Wash100 Award recipient.
What Does Kudu Dynamics Do?
Kudu Dynamics has supported the Department of Defense by providing automated targeting, hardware reserve engineering support, cyber capabilities and non-kinetic effects against various military-relevant systems.
The company was founded by CEO Mike Frantzen in 2013.
“We’re excited to deliver the next level of capabilities to our customers as we bring together the highly innovative cyber professionals and disruptive technologies of Kudu with the scale, resources and experience of Leidos,” said Frantzen.
