What's Happening?
Leidos, a major player in engineering solutions, has announced a definitive agreement to acquire ENTRUST Solutions Group for approximately $2.4 billion. This acquisition aims to enhance Leidos' position
in the utility gas and electric generation infrastructure markets. ENTRUST, known for its engineering expertise across the power delivery spectrum, will complement Leidos' existing capabilities, effectively doubling the size of its $600 million energy infrastructure engineering business. The acquisition is expected to be immediately accretive to Leidos' revenue growth and EBITDA margin. The transaction is anticipated to close by the end of the second quarter of 2026, pending regulatory approvals.
Why It's Important?
This acquisition is significant as it positions Leidos to better serve the growing demands of the U.S. utility sector, which is projected to invest $1 trillion over the next decade in infrastructure modernization. By integrating ENTRUST's capabilities, Leidos aims to drive innovation and improve the reliability and resilience of America's energy infrastructure. This move aligns with national priorities to strengthen the U.S. electrical grid against aging systems and extreme weather events. The acquisition also reflects Leidos' strategic focus on secure energy infrastructure, which is crucial for meeting future energy demands and ensuring national energy security.
What's Next?
Following the acquisition, Leidos plans to integrate ENTRUST's operations and leverage its expanded capabilities to tackle complex challenges in the utility and power markets. The company will host a conference call to discuss the transaction and its implications. As the deal progresses, stakeholders will be watching for regulatory approvals and the successful integration of ENTRUST into Leidos' operations. The acquisition is expected to enhance Leidos' competitive edge in securing future contracts and expanding its client base in the utility sector.
