Leidos to buy Arlington-based Gibbs & Cox for $380M
Transaction is part of effort to expand into maritime market
Reston-based Fortune 500 government contractor Leidos Holdings Inc. has agreed to acquire Arlington engineering and design firm Gibbs & Cox Inc. in a $380 million cash transaction as part of its efforts to expand into the maritime market and add engineering talent to its team.
Leidos expects the deal to be completed in the second quarter of fiscal year 2021, subject to customary closing conditions.
Gibbs & Cox has 525 employees focused on delivering naval architecture and maritime engineering support to the U.S. Navy, government customers and international clients. Its core capabilities also include electrical engineering and design integration, environmental, safety and health, program management, structural engineering and production design.
Roger Krone, chairman and CEO of Leidos, said the acquisition will help Leidos broaden its maritime business and add marine engineering, naval architecture, 3D modeling and design and other services.
“In addition to being positioned on the front end of next generation vessels, the business combination provides significant tailwinds for participation in the maritime unmanned market and accelerates Gibbs & Cox’s expansion in the undersea domain,” Krone told analysts last week on an earnings call.
Leidos’ full fiscal year 2020 revenue rose 10.8% to $12.3 billion and recorded $3.25 billion for the fourth quarter, representing a 10.1% increase from the year prior. The information technology and engineering services contractor posted $17.8 billion in fiscal year 2020 net bookings.