Leidos to acquire utilities design firm for $2.4B

Reston-based Fortune 500 government contractor Leidos has entered an agreement to buy utilities infrastructure design firm Entrust Solutions Group for approximately $2.4 billion in cash, it announced Monday.

According to Leidos, the acquisition will effectively double the size of its $600 million energy infrastructure engineering business. Based in Illinois, Entrust is owned by New York private equity firm Kohlberg & Co.

“Entrust’s engineering capabilities and customer base perfectly complement ours, and it has a consistent track record of growth and strong profitability,” Leidos CEO Tom Bell said in a statement. “This deal is a bold step forward in support of Leidos’ growth strategy and a national priority to expand America’s energy infrastructure, while improving reliability and resilience against aging systems and extreme weather events.”

The acquisition is expected to close by the second quarter of this year, according to the announcement.

Entrust has about 3,100 employees across 40 locations in North America.

“By joining Leidos, we’re uniting world-class power and energy engineering expertise to create a leading end-to-end infrastructure platform,” said Adam Biggam, Entrust’s CEO. “Our combined 5,500+ energy professionals will have the resources, technology and reach to tackle the most complex challenges facing the utility and power markets today.”

Leidos said it plans to fund the transaction through a combination of new debt, cash on hand and commercial paper.

Last week, Leidos said it plans to lay off 93 employees in Ashburn by March 23, a move related to a recompete of a U.S. Customs and Border Protection Office of Information Technology contract worth up to $100 million. Leidos has about 47,000 global employees and reported revenue of $16.7 billion in the fiscal year that ended Jan. 3, 2025.