Leidos has entered into a definitive agreement to purchase ENTRUST Solutions Group from New Mountain Capital for $2.4 billion in an all-cash transaction. The deal is expected to close in the second half of 2024, subject to regulatory approvals and customary closing conditions. Once completed, ENTRUST’s 1,200 employees will join Leidos’s Energy business segment, positioning the combined team to address utility infrastructure projects across North America.

With the addition of ENTRUST’s expertise in high-voltage transmission lines, substation design and smart grid integration, Leidos projects its Energy engineering revenues to approximately double, growing from roughly $1.1 billion in 2023 to an estimated $2.2 billion in 2025. Management forecasts annualized cost synergies of $75 million by year three, driven by shared back-office functions and optimized procurement of materials such as transformers and switchgear.

The acquisition deepens Leidos’s footprint in the fast-growing utility infrastructure market, which the company estimates at $500 billion in annual spending by U.S. electric utilities over the next decade. By leveraging ENTRUST’s six regional engineering centers and Leidos’s existing project management platforms, the combined entity aims to win larger federal and state contracts, including Department of Energy grid resiliency programs and Public Utility Commission initiatives in California and Texas.