Leidos completes $1.65B Dynetics acquisition

Reston-based defense contractor Leidos completed its acquisition of Huntsville, Alabama-based national security services provider Dynetics Inc. for $1.65 billion in cash, Leidos announced Monday.

The transaction was first announced in December 2019. 

For the fiscal year that ended Dec. 28, 2018, Leidos reported that its annual revenues were approximately $10.19 billion. The company was founded in 1969 and employs more than 32,000 people.

Dynetics, which currently employs 2,300 people, will operate as a wholly-owned subsidiary of Leidos and its current CEO David King will report to Leidos Chairman and CEO Roger Krone. 

“This combination adds innovative capabilities in our targeted growth areas, while expanding our secure agile production capabilities, secure agile manufacturing, and increasing our penetration with key customers,” Krone said in a statement.

Leidos used Milwaukee, Wisconsin-based wealth management company Baird as a financial adviser and New York City-based Skadden, Arps, Slate, Meagher & Flom LLP as a legal adviser in the transactions. Dynetics used New York City-based Jefferies LLC for financial advising, Atlanta-based King & Spalding LLP for legal advising, Chicago-based Grant Thornton LLP for accounting advising and Washington, D.C.-based Avascent for industry consulting.