Leidos signs agreement to acquire ENTRUST Solutions in $2.4bn deal

Core Viewpoint - Leidos has agreed to acquire ENTRUST Solutions Group for approximately $2.4 billion in cash, with the deal expected to close by the end of Q2 2026, pending regulatory approvals [1][2]. Group 1: Acquisition Details - The acquisition will be funded through a combination of new debt, available cash, and commercial paper [1]. - ENTRUST was initially acquired by Kohlberg in 2019, and this sale marks an exit for the private equity firm [1]. Group 2: Company Overview - ENTRUST employs over 3,000 professionals across 40 locations in North America, providing consulting, design, and engineering services primarily to gas and electric utilities [2]. - The integration of ENTRUST is expected to double the scale of Leidos' existing $600 million energy infrastructure engineering business [2]. Group 3: Strategic Implications - The acquisition is anticipated to enhance Leidos' access to utility sector markets and expand its client base among utilities [3]. - This move aligns with Leidos' NorthStar 2030 strategy, which emphasizes engineering and technology for secure energy infrastructure [3]. Group 4: Leadership Perspective - ENTRUST CEO Adam Biggam highlighted that the merger will unite expertise in power and energy engineering, creating a robust infrastructure platform with over 5,500 energy professionals [4].