Peraton closes on $3.4B cash purchase of Northrop Grumman biz
Veritas Capital affiliate buys federal IT, mission support services division
Falls Church-based Fortune 500 aerospace and defense contractor Northrop Grumman Corp. announced Monday the closure of the sale of its federal IT and mission support services business for $3.4 billion in cash to Herndon-based national security contractor Peraton, a Veritas Capital affiliate.
According to the December 2020 announcement about the sale, proceeds are expected to go to share repurchases and debt retirement.
“The completion of this transaction brings together two dynamic businesses with complementary, mission-critical solutions and capabilities, creating an industry-leading platform with a shared commitment to customer success,” Veritas CEO and Managing Partner Ramzi Musallam said in a statement. “This milestone kicks off the next exciting phase of growth for Peraton.”
Peraton also announced last week it would acquire Chantilly-based federal contractor Perspecta Inc. for $7.1 billion.
Veritas expects to combine the Northrop Grumman business unit with Peraton. In 2017, the former government services business Harris Corp. became Peraton after it was acquired by Veritas Capital. Peraton, through the U.S. federal contracts, provides systems development and mission capability integration.
Northrop Grumman employs more than 90,000 people and reported $33.8 billion in 2019 revenue.