ASRC Federal to pay $350M for SAIC’s logistics biz
240 SAIC employees will move to ASRC Federal
Reston-based Science Applications International Corp. (SAIC) has agreed to sell its logistics and supply chain management business to Reston-based ASRC Federal Holding Company LLC for $350 million in cash, both companies announced Thursday.
About 240 SAIC employees will transition to ASRC Federal upon completion of the deal, which is expected to close in spring 2023.
“Today’s announcement represents a milestone in SAIC’s priority to shape our portfolio and advance our strategy,” SAIC CEO Nazzic Keene said in a statement. “The agreement allows for seamless transition and continued support for the logistics and supply chain management business and their important customer missions, while enabling SAIC to concentrate resources in our growth and technology accelerant areas of focus. These areas include secure cloud, enterprise IT and systems integration and delivery, which now account for more than 30% of SAIC revenue.”
SAIC’s logistics and supply chain solutions are used by the Defense Logistics Agency, which provides services to Department of Defense agencies, including the Army, Air Force and Navy. The business is a “natural fit” for ASRC Federal’s base operations support, which provides procurement, logistics and warehousing services at military locations throughout the company, ASRC said in a news release.
“This acquisition provides another channel for growth by further diversifying our robust set of capabilities,” ASRC Federal President and CEO Jennifer Felix said in a statement. “I am excited to welcome this mission-focused team who has earned a best-in-class reputation for delivering innovative solutions to their customers. Their work directly impacts the readiness of America’s warfighters, and they will bring tremendous capability to both new and existing ASRC Federal customers.”
ASRC Federal is a federal government services subsidiary of Arctic Slope Regional Corp., an Alaska Native corporation. SAIC employs more than 25,000 people and reported $7.4 billion in revenue in fiscal 2022.