Two govcons to merge, move HQ to NoVa
Vectrus Inc., The Vertex Co. to form company with 2021 pro forma revenue of $3.4B
Colorado-based government contractor Vectrus Inc. and Mississippi-based The Vertex Co. will merge to form a company that will be based in Northern Virginia.
Vectrus shareholders approved the all-stock merger, expected to close in the third quarter of 2022, on Wednesday. The combined company will be named V2X Inc. and will trade on the NYSE under the ticker VYX. Vectrus shares currently trade under the ticker VEC. At 4 p.m. Friday, Vectrus shares were trading for $31.73, a drop of about 0.94% from its cost at opening.
“Today’s overwhelming approval marks a significant step toward completing our merger with Vertex, and creating one of the leading providers of critical mission solutions and support to defense clients globally,” Vectrus CEO Chuck Prow said in a statement.
The new company headquarters will be in what is currently a Vectrus’ office at 7901 Jones Branch Drive in Tysons.
The combined company will have 2021 pro forma revenue of about $3.4 billion and an adjusted EBITDA of about $283 million. Under the agreement, Vertex shareholders will own approximately 62% of the combined company on a fully diluted basis. Vectrus shareholders will own approximately 38%.
Prow will serve as CEO of V2X, and Vectrus Chief Financial Officer Susan Lynch will serve as V2X’s CFO. The V2X Board of Directors will have 11 members, six from the current Vectrus board (including Prow) and five from Vertex, including Vertex President and CEO Ed Boyington.
Vectrus has about 8,100 employees across 205 locations in 28 countries. In 2021, the company reported $1.78 million in revenue.
Vertex provides turnkey lifecycle support for government and commercial clients and has about 6,000 employees across 125 locations. Private equity firm American Industrial Partners’ Capital Fund VI LP is the majority owner of Vertex. The company rebranded from Vertex Aerospace in March. In December 2021, Vertex acquired Raytheon Technologies’ Defense Training and Mission Critical Solutions segments.