“Science Applications International Corp. ” a premier technology integrator, today announced that it has entered into a definitive agreement to acquire Unisys Federal, in an all-cash transaction valued at $1.2 billion ($1.025 billion net of the present value of tax assets of approximately $175 million), in a highly strategic and value creating transaction. This represents a transaction multiple of approximately 10.5x CY2020 adjusted EBITDA, adjusted for the net present value of tax assets.”
“Unisys Federal, an operating unit of Unisys (NYSE: UIS), is a leading provider of infrastructure modernization, cloud migration, managed services, and enterprise IT-as-a-service through scalable and repeatable solutions to U.S. federal civilian agencies and the Department of Defense.”
“With the addition of Unisys Federal, SAIC will be a leading provider of digitial transformation services and solutions 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,” said SAIC CEO Nazzic Keene.”
“The transaction will further differentiate SAIC in the government services market by deploying technology-enabled, intellectual property-based solutions through a commercial–like service delivery model. The acquisition will further enhance shareholder value through a highly attractive financial profile, enabled through greater customer access and differentiated solutions in areas of higher growth profiles.”
“Strategic and Financial Benefits
- Enhances capabilities in government priority areas, including IT modernization, cloud migration, managed services, and development, security, and operations (DevSecOpps)
- Expands portfolio of intellectual property (IP) and technology-driven offerings, that enable government-tailored, commercial-based solutions
- Increases access to current and new customers with a strong pipeline of new business opportunities”
Read the full press release here.
Source: SAIC to Acquire Unisys Federal in Accretive, Strategic and Value Creating Transaction, February 6, 2020. SAIC.
G2X TAKE: SAIC is at it again. Only a year removed from their huge acquisition of Engility comes word that this leading Federal technology integrator makes another big buy, this time adding a major FedCiv player who has been riding a hot streak of late and that carries a broad set of Prime GWAC and FedCiv specific contract vehicles (see list here).
Take Bytes
- This is just the latest in a string of strategic actions for SAIC, to include the $2.5B acquisition of CIO-SP3, OASIS, and Alliant 2 Prime, Engility, a longtime partner to numerous Federal Civilian agencies this time last year; a strategic partnership they signed with Franklin Venture Partners last year to broaden its access and exposure to emerging technologies developed by startup companies across the United States; and the recent news that they are partnering with AI Provider Espressive to Bring Next Generation IT User Experience to Government Customers.
- SAIC was recently named one of the NXT UP firms poised to make big waves in the Federal sector in 2020 and for years to come.
- Just a few of the recent FedCiv wins by Unisys that likely increased their valuation include:
- Department of Transportation awards $650M Enterprise IT Shared Services (EITSS) Unrestricted IDIQ
- Unisys announces $144M NOAA Cloud Initiative BPA
- GSA makes CIO Modernization and Enterprise Transformation (COMET) awards
- Unisys selected to participate in $70 million contract to provide IT services to the U.S. Mint
- Office of the Comptroller of the Currency (OCC) awards $69M Cloud Managed Service BPA
- and some of the recent hires and industry moves don’t hurt either:
Tagged: Department of Homeland Security (DHS), Department of Transportation (DOT), Department of Treasury, Featured, General Services Administration (GSA), Internal Revenue Service (IRS), Modernization, saic, Unisys
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