Jan 26 (Reuters) - Leidos Holdings said on Monday it would buy power design firm ENTRUST Solutions Group from private equity firm Kohlberg for about $2.4 billion, as it looks to expand engineering offerings
for utility customers.
Aggressive grid expansion, tied to support electrification and data center demand, has supported the growth of Leidos, which provides engineering services to commercial utilities with a focus on transmission and distribution.
The Virginia-based company has also benefited from increased investment to strengthen and modernize aging grid infrastructure against extreme weather events.
The move helps Leidos double the size of its $600 million energy infrastructure engineering business, and would broaden its clients to include gas utilities as well.
Leidos expects the acquisition to immediately add to its revenue growth and adjusted core profit margin, while adding to the firm's adjusted earnings per share in 2027.
"ENTRUST's engineering capabilities and customer base perfectly complement ours," said Leidos Chief Executive Officer Tom Bell.
Combined, the companies will have over 5,500 professionals working in the energy market, Adam Biggam, ENTRUST CEO, said.
The deal, which Leidos will fund using a combination of new debt, cash on hand and commercial paper, is expected to close by the end of the second quarter of 2026.
Citi is serving as the financial advisor for the deal to Leidos, while Davis Polk & Wardwell LLP is serving as the legal advisor.
(Reporting by Aishwarya Jain in Bengaluru; Editing by Vijay Kishore)
