Vectrus [VEC] is expanding its work with the intelligence community following two new acquisitions that also add technologies for converged infrastructure.
On Monday, Vectrus said it acquired HHB Systems, a small Northern Virginia-based company that provides systems engineering and technical assistance in the areas of facilities management, logistics, enterprise operations, asset management, information technology and cyber security.
HHB has more than 50 employees, 95 percent of which hold Top Secret clearances or above, serving the intelligence community.
“The acquisition of HHB brings integrated solutions that support physical and digital infrastructures within the intelligence community and creates a stronger platform from which we can deliver fully converged solutions across all our clients’ missions,” Sue Deagle, senior vice president and Chief Growth Officer of Vectrus, said in a statement.
Terms of the deal were not disclosed.
The acquisition builds on another that Vectrus announced on Dec. 28 for Zenetex, which provides integrated security capabilities to protect physical assets and information technology systems, integrated logistics, operations and maintenance services for legacy and next-generation aircraft, and adds foreign military sales (FMS) customers and expertise. Zenetex, which is also based in Northern Virginia, has customers in the intelligence community, Defense Department, including the Navy, federal government, and more than 40 countries through FMS contracts.
“This important acquisition significantly enhances our capabilities across a number of high priority clients and accelerates our strategy to deliver a more integrated and comprehensive suite of solutions to our clients globally,” Chuck Prow, president and CEO of Vectrus, said in a statement. “Zenetex broadens our reach into the intelligence community and expands our engineering and digital technology offerings, which is critical as we expand our capabilities to help our clients’ transition to a more instrumented and converged approach to supply chain and facility management.”
Vectrus is paying $123 million for Zenetex, excluding $11 million in expected tax benefits. The deal increases Vectrus’ backlog by more than $700 million and is expected to be accretive to adjusted 2021 earnings per share. For its third quarter that ended on Oct. 2, Vectrus had $3.7 billion in backlog.
Zenetex has about 2,000 employees and had more than $200 million in sales in 2020.
Vectrus had $1.4 billion in sales in 2019 and expects about the same when it reports 2020 results.
Zenetex’ financial adviser on the deal was KippsDeSanto & Co. and Vectrus was advised by Ernst & Young.