NEW YORK--(BUSINESS WIRE)--Veritas Capital (“Veritas”), a longstanding investor in companies operating at the intersection of technology and government, today announced that an affiliate of Veritas has signed a definitive agreement to acquire the federal IT and mission support services business of Northrop Grumman (NYSE: NOC) for $3.4 billion in cash.
The business provides a wide range of advanced technology solutions including cybersecurity, data analytics, cloud, mission-critical application development and advanced engineering to defense, intelligence, space, civil and health customers. The business expects to generate $2.3 billion in revenue in 2020.
The government technology market has been a key focus area for Veritas since its inception. Veritas has a robust track record of strategically transforming divested assets into leading providers of mission-critical solutions by working closely with management teams to drive growth and enhance the development of innovative products and services.
“The federal IT and mission support services business of Northrop Grumman has an exceptional track record of delivering innovative technology that addresses the critical needs of its government agency customers,” said Ramzi Musallam, Chief Executive Officer and Managing Partner of Veritas. “We believe that with our focus, vision and resources, we can create a scaled, technology-enabled services platform that is well-positioned for long-term growth and able to deliver unparalleled support to a broad range of critical government missions.”
At the close of the transaction, Veritas expects to combine the business with its portfolio company Peraton, a trusted provider of highly differentiated space, intelligence, cyber, defense, homeland security and communications capabilities to select federal agencies and commercial entities. The combination will create a leading government mission capability integrator and IT provider focused on delivering high-end technology-enabled services. Peraton Chairman, President & Chief Executive Officer Stu Shea will continue to lead the combined business.
“We look forward to welcoming the federal IT and mission support services business’ experienced team to Peraton. With this addition, we will continue to position Peraton as an industry leader, applying the technology and mission understanding that will solve our customers’ most daunting challenges and mission needs,” said Stu Shea. “Our differentiated, complementary solutions and deep relationships with our respective customer bases give us the scale and resources to continue to address the evolving needs of government customers. The transaction will also expand our presence in both the federal civil and health marketplaces while continuing to add to our capabilities in the mission-critical IT domain. We are confident in our growth trajectory as we leverage Veritas’ industry expertise and serve as the pre-eminent partner to the government.”
The transaction is expected to close in the first half of 2021. It is subject to customary closing conditions and regulatory approvals.
About Veritas Capital
Veritas is a private investment firm that invests in companies that provide critical products and services, primarily technology and technology-enabled solutions, to government and commercial customers worldwide, including those operating in the healthcare, national security, software, education, aerospace & defense, government services, communications, and energy industries. Veritas seeks to create value by strategically transforming the companies in which it invests through organic and inorganic means.
For more information on Veritas, visit www.veritascapital.com.
About Peraton
Peraton provides innovative, reliable solutions to the nation’s most sensitive and mission-critical programs and systems. As a trusted provider of highly differentiated space, intelligence, cyber, defense, homeland security, and communications capabilities, Peraton is a critical partner to the Intelligence Community, Department of Defense, and select federal agencies and commercial entities. Headquartered in Herndon, Virginia, the company employs 3,500 people across the U.S. and Canada.
For more information on news and updates on Peraton, visit www.Peraton.com/news.