SAIC set to acquire Unisys Federal for $1.2B

Science Applications International Corp. (SAIC) will acquire Unisys Federal for $1.2 billion, SAIC announced Thursday.

Both companies are Reston-based, publicly traded federal contractors specializing in IT services.

The transaction was approved by SAIC’s board of directors and the transaction is expected to close by May 1.

Unisys Federal is an operating unit of Blue Bell, Pennsylvania-based Unisys. The company provides infrastructure modernization, cloud migration and other IT services to the federal government. SAIC provides similar services such as cloud services, software and advanced analytics to the federal government.

“This exciting opportunity advances our strategy by building on our modernization capabilities, increasing customer access, accelerating growth and enhancing shareholder value,” SAIC CEO Nazzic Keene said in a statement. “The financial benefits of acquiring Unisys Federal are compelling, including accretion of adjusted EBITDA margins, non-GAAP earnings per share and cash generation.”

Guggenheim Securities LLC and Citigroup Global Markets Inc. financially advised SAIC during the transaction and Atlanta-based King & Spalding LLP provided legal counsel.