Leidos Expands Energy Infrastructure Engineering Business with Acquisition of ENTRUST Solutions Group
Leidos, a prominent engineering solutions provider for utilities, has announced the acquisition of ENTRUST Solutions Group from Kohlberg for approximately $2.4 billion. This move will significantly enhance Leidos' energy infrastructure engineering business, doubling its size and expanding its capabilities in the transmission and distribution sectors. The acquisition will also strengthen Leidos' position in the utility market and drive innovation across a broader range of utility customers.
For over 20 years, Leidos has been delivering top-notch engineering services to commercial electric utilities, focusing on transmission and distribution. ENTRUST Solutions Group brings expertise in power delivery across gas and electric utilities, complementing Leidos' existing capabilities. The acquisition will enable Leidos to serve a wider base of utility clients and address the complex challenges in the utility and power markets.
The acquisition aligns with Leidos' growth strategy, NorthStar 2030, which emphasizes engineering and technology for secure energy infrastructure. With U.S. utilities projected to invest $1 trillion in modernization over the next decade, the acquisition of ENTRUST will position Leidos to support the national priority of strengthening and securing the U.S. electrical grid.
The transaction, expected to close by the end of the second quarter of 2026, will be funded through a combination of new debt, cash on hand, and commercial paper. Leidos anticipates the acquisition to be immediately accretive to revenue growth and adjusted EBITDA margin, with accretive non-GAAP diluted earnings per share in 2027.
Leidos' management will host a conference call to discuss the transaction, providing further details on the strategic implications and benefits of the acquisition. The company's focus on creating an end-to-end infrastructure platform with combined engineering expertise will drive innovation and growth in the energy sector.
In conclusion, Leidos' acquisition of ENTRUST Solutions Group marks a significant milestone in expanding its energy infrastructure engineering business and strengthening its position as a leading provider of engineering solutions for utilities nationwide. The strategic move aligns with Leidos' growth strategy and underscores its commitment to driving innovation and addressing the evolving challenges in the utility and power markets.