Leidos is currently designing space sensors to track hypersonic weapons, and providing engineering and mission support for NASA cargo runs to the International Space Station. The company is also building a hosted payload for the U.S. Federal Aviation Administration to sharpen GPS signals for the pilots
Fremont, CA: U.S. defense contractor Leidos has acquired American applied science and information technology company Dynetics in a deal worth USD 1.65 billion. Leidos believes this will aid the company as it seeks growth opportunities in hypersonics, space solutions, autonomy, and advanced sensors. After incorporation of the deal, Dynetics will become a wholly-owned subsidiary of Reston, Virginia-based Leidos, and will bolster the company's presence in Huntsville, Alabama, where Dynetics is headquartered. Leidos' executive board believes the acquisition of Dynetics should add roughly USD 1 billion to the company's annual revenue in 2020, without hampering the company's low rate of capital expenditures.
"With Dynetics, we are adding innovative capabilities in high growth areas, creating opportunities to grow in complementary and attractive segments, including hypersonics, space, and weapons solutions," said Roger Krone, Leidos chairman, and chief executive. "Our two complementary organizations' strategies and cultures will broaden each companies' customer reach, and together we will enhance our offering and services across a broader combined customer base.”
Currently, Dynetics provides structural qualification testing for United Launch Alliance’s Vulcan rocket and is building the Universal Stage Adapter for NASA's Space Launch System. The company is also the supplier of the propulsion system for Astrobotics’ Peregrine lunar lander and is involved with Maxar Technologies in building the Power and Propulsion Element of NASA's Lunar Gateway Space Station. Leidos' chief financial officer, Jim Reagan, believes space programs are an area where Dynetics offers the most synergies with Leidos. “The engineering and high-end technology opportunities that we see there are really going to spring from the technological capabilities that Dynetics brings to us,” he added.
Leidos is currently designing space sensors to track hypersonic weapons, and providing engineering and mission support for NASA cargo runs to the International Space Station. The company is also building a hosted payload for the U.S. Federal Aviation Administration to sharpen GPS signals for pilots. According to Krone, the company hopes that all of the 2,300 employees at Dynetics will stay through the acquisition, which would boost Leidos' headcount to around 36,000 personnel. He also added that the two companies follow similar corporate cultures, which should ease the integration process despite the structural differences.
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