After the close of the stock markets on Monday, Science Applications International Corp. [SAIC] said it has completed its $2.5 billion stock acquisition of Engility, creating a $6.5 billion company with 23,000 employees focused technology integration and services.
SAIC CEO Tony Moraco said in statement that the company is “driven by mission, united by purpose and inspired by opportunity. Add to that five consecutive quarters of organic revenue growth for SAIC and the trend is clear, we’re thriving. We are now a bigger, stronger company executing our long-term strategic plan, dedicated to exceeding customer expectations and driving shareholder value.”
In terms of government services companies, SAIC stands behind Leidos [LDOS] and the information technology segment of General Dynamics [GD], which acquired CSRA last year. All three companies have cited scale and complementary capabilities and customers in making strategic acquisitions that have dramatically increased their sales.
Before the deal for Engility, SAIC had about $4.6 billion in annual sales. The acquisition of Engility expands the company’s work with the intelligence community, and to a lesser degree with the Defense Department and other federal agencies.