SAIC, Engility stockholders vote to approve merger
SAIC COO Nazzic Keene says the complex corporate integration work undertaken since the deal was announced in September is complete and the combined company will be “in the market” the first day after the transaction’s close.
Science Applications International Corp. and Engility Holdings Inc. said Friday that shareholders overwhelmingly approved SAIC’s $2.5 billion all-stock deal to acquire Engility and create one of the largest government technology integrators in the market.
More that 98 percent of the shares voting at Reston-based SAIC’s meeting of stockholders voted in favor the union, while 99 percent of Engility stockholders signed off on the deal.
The transaction is expected to close in the next few business days. Shareholders in Chantilly-based Engility (NYSE: EGL) will have the right to receive 0.450 shares of SAIC (NSYE: SAIC) common stock for each share of Engility common stock, with cash paid in lieu of fractional shares.
SAIC executives as well as Engility CEO Lynn Dugle traveled to New York this week to talk up the deal with Wall Street analysts and investors. CEO Tony Moraco emphasized how the deal strengthens SAIC’s position in the space and intelligence markets and boosts its cleared workforce to 6,000. COO Nazzic Keene said the complex corporate integration work undertaken since the deal was announced in September was complete and the combined company would be “in the market” the first day after the transaction’s close.
The deal creates the second-largest government IT company in the market, with $6.5 billion in revenue, trailing only Reston-based Leidos Holdings (NYSE: LDOS), with $10.1 billion in annual sales. SAIC’s enterprise IT and logistics work and Engility’s space and intelligence contracts fit together nicely in ways that will enable the combined company to take a unique set of capabilities to the market, executives and industry analysts say.
Engility had been bandied about for some time locally as a possible acquisition target and five buyers were in the mix for the company before SAIC won out.
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