WASHINGTON — Government information technology and technical services provider SAIC of McLean, Virginia, will acquire intelligence and national-security space support contractor Scitor Corp. for $780 million in cash, SAIC announced March 1.
The acquisition, expected to close in May pending U.S. regulatory approvals, fits with SAIC’s strategy to expand into the U.S. intelligence and Air Force markets, the company said. Herndon, Virginia-based Scitor provides technical and engineering support services to defense and intelligence customers including the U.S. National Reconnaissance Office, which buys and operates the nation’s spy satellites.
SAIC in its current form was spun out of a larger company with the same name in 2013. The residual parent company, called Leidos, retained most of the legacy national business.
SAIC will fund Scitor acquisition through a combination of debt and cash on hand. The combined company will have pro forma annual revenue of $4.5 billion and EBITDA, or earnings before interest, taxes, depreciation and amortization, of $321 million, SAIC said.
“Scitor is a recognized market leader with long-standing customer and industry relationships within the intelligence community and is aligned with SAIC’s market expansion strategy,” SAIC Chief Executive Tony Moraco said in a prepared statement. “Operating as one company represents an opportunity to create shareholder value by gaining access to new customers and leveraging capabilities from both companies to increase revenues and earnings.”