Leidos announced it has signed a definitive agreement to acquire ENTRUST Solutions Group from Kohlberg for approximately $2.4 billion in an all-cash transaction, aiming to expand its position in utility engineering and enter the utility gas and electric generation infrastructure markets.
The company said the deal will effectively double the size of its roughly $600 million energy infrastructure engineering business and broaden its base of utility clients by adding ENTRUST’s capabilities spanning generation through transmission and distribution across both gas and electric utilities.
Leidos framed the acquisition as part of its NorthStar 2030 growth strategy, describing secure energy infrastructure engineering and technology as a strategic focus. The company pointed to projected utility investment of $1 trillion over the next decade tied to grid modernization, growing power demand, and efforts to improve reliability and resilience amid aging systems and extreme weather events.
Leidos said the transaction is expected to be immediately accretive to revenue growth and adjusted EBITDA margin, and accretive to non-GAAP diluted earnings per share in 2027. The company expects to fund the $2.4 billion purchase through a mix of new debt, cash on hand, and commercial paper.
ENTRUST Solutions Group has more than 3,100 professionals across 40+ locations in North America, providing engineering, consulting, design, asset integrity, data solutions, and automation services to utilities, operators, and industrial customers. Leidos said the combined organization will have more than 5,500 energy professionals.
Support: Leidos said it retained Citi as financial advisor, Davis Polk and Wardwell as legal advisor, and PwC as accounting advisor.
KEY QUOTES
“ENTRUST’s engineering capabilities and customer base perfectly complement ours, and it has a consistent track record of growth and strong profitability,”
Tom Bell, Chief Executive Officer, Leidos
“By joining Leidos, we’re uniting world-class power and energy engineering expertise to create a leading end-to-end infrastructure platform,”
Adam Biggam, CEO, ENTRUST
