CHANTILLY, Va., March 2 (UPI) -- Government services provider Engility Holdings has completed acquisition of TASC Inc., expanding its presence in the federal intelligence market.
The all-stock transaction, valued at about $1.3 billion, includes Engility assuming TASC's net debt.
Engility said it received financing in connection with the deal from Barclays and Jefferies Finance LLC.
"This transformational acquisition accelerates our growth strategy to further diversify our customer base, enhance our capabilities, add scale to our business, and increase our addressable market," said Engility President and Chief Executive Officer Tony Smeraglinolo. "In addition to these strategic benefits, this acquisition offers many compelling financial characteristics, including significantly improving our cash flow and adjusted earnings.
"We believe our differentiated business model will benefit TASC's intelligence and space customers, and we look forward to leveraging the strengths of both companies to create additional value for our customers, employees and shareholders."
TASC specializes in systems engineering and architectures for the national security and public safety markets. It has about 3,700 employees.
Engility said TASC brings more than 850 contracts and task orders to the deal.
In 2014, about 61 percent of Engility's revenue came from its defense market business, the company said. With the acquisition of TASC it expects about 47 percent of its income to come from the defense market, with the remainder coming from intelligence and civilian federal agency customers.
