Contractor Engility Acquires TASC for $1.1 Billion
WASHINGTON — Engility Corp. will acquire systems engineering company TASC in a $1.1 billion all-stock deal, Engility announced Oct. 27.
Both firms are based in Chantilly, Virginia, near the U.S. National Reconnaissance Office, which builds the nation’s spy satellites and is a key customer for the two contractors.
Tony Smeraglinolo, Engility’s chief executive, will hold on to that title for the combined company, and John Hynes, TASC’s chief executive, will become chief operating officer, according to an investor presentation on Engility’s third-quarter results.
TASC has more than 4,000 employees and a funded backlog of $385 million.
Engility said the move diversified its customer base and adds scale to the business, the presentation said.
The combined company’s customer base will include the U.S. Air Force, NASA, the NRO and several government intelligence agencies.
Engility expects the addition of TASC to improve the combined company’s offerings in systems engineering and integration, and hardware engineering and sustainment, among other business areas.
TASC was part of Northrop Grumman Corp. until it was sold off in 2009 for $1.65 billion as a result of new federal legislation that made it more difficult for firms to both sell hardware to the government and provide advisory services.
The deal is expected to close in the first quarter of 2015.