Leidos Completes \$2.4 Billion Acquisition of ENTRUST Solutions Group

Key Highlights of the Acquisition

• Leidos (NYSE: LDOS) has finalized the \$2.4 billion acquisition of ENTRUST Solutions Group from Kohlberg.
• The deal effectively doubles Leidos’ presence in the energy infrastructure market, significantly expanding its capabilities and workforce.
• More than 3,100 skilled professionals from ENTRUST join Leidos, bringing extensive expertise in electric grid engineering and natural gas infrastructure.
• Leidos now boasts enhanced engineering capabilities across the entire power delivery spectrum and a broader base of utility customers.
• This acquisition is a strategic move, strengthening Leidos’ position as a leading provider of power engineering and design services, and supports its long-term investment in energy infrastructure.
• The deal aligns with Leidos’ NorthStar 2030 strategy, emphasizing energy growth as a key pillar for the company’s future.

Potentially Price-Sensitive Information for Shareholders

• Market Expansion: The acquisition marks a major expansion for Leidos, doubling its energy infrastructure footprint. This could positively affect revenue growth and future contracts in the utility sector.
• Integration Risks: The company acknowledged risks associated with integrating ENTRUST and completing intended permanent financing. Investors should monitor progress on integration and any updates regarding financing.
• Revenue Impact: Leidos reported annual revenues of approximately \$17.2 billion for the fiscal year ending January 2, 2026, and this acquisition is expected to further boost its revenue profile.
• Strategic Alignment: The acquisition reinforces Leidos’ commitment to grid modernization, helping utilities nationwide improve reliability and meet rising power demand—a sector poised for growth amid increasing energy needs.
• Forward-Looking Risks: The release includes extensive forward-looking statements, highlighting risks such as integration challenges, U.S. government budget uncertainties, inflation, geopolitical events, and cybersecurity threats. Any materialization of these risks could impact share value.
• Human Capital: With the addition of 3,100+ professionals across 40+ North American locations, Leidos enhances its ability to deliver comprehensive engineering, consulting, asset integrity, data solutions, and automation services. Retention and successful integration of this talent pool are critical.
• Regulatory and Legal Risks: The company notes compliance risks associated with U.S. government procurement rules, international anti-corruption laws, privacy, and data security regulations. These could affect operational stability and investor confidence.
• Growth Potential: Leidos aims to grow its commercial health and infrastructure businesses, but budgetary constraints faced by hospitals and energy developers could pose challenges.

Details on ENTRUST Solutions Group

ENTRUST Solutions Group operates across 40+ North American locations and provides comprehensive engineering, consulting, design, asset integrity, data solutions, and automation services to utilities, operators, and industrial customers. Its integration with Leidos is expected to enhance the combined company’s ability to deliver end-to-end energy infrastructure solutions.

Risks and Considerations

• The acquisition is subject to risks typical of large integrations, including cost estimates, legal disputes, cybersecurity threats, and compliance with privacy laws and international regulations.
• There are forward-looking uncertainties regarding government budgets, economic conditions, inflation, interest rates, and the impact of potential pandemics or natural disasters.
• Leidos’ ability to maintain and grow relationships with prime contractors, subcontractors, and joint venture partners is crucial for future contract wins and operational success.
• Investors should monitor the company’s progress in integrating ENTRUST, managing risks, and executing its NorthStar 2030 strategy.

Contact Information

Media Contact:
Victor Melara
Senior Media Relations Manager
703.431.4612
[email protected]

Disclaimer: This article is intended for informational purposes only and does not constitute investment advice. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those anticipated. Investors should conduct their own research and consult with financial advisors before making investment decisions.

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