US shipbuilder Huntington Ingalls Industries (HII) announced on July 6 that it entered into an agreement to acquire Alion Science and Technology for $1.65 billion in cash from Veritas Capital.
Under the agreement, which is still subject to customary approvals, Alion will become part of Huntington Ingalls Industries’ Technical Solutions division. The transaction is expected to close in the second half of 2021, according to HII.
Alion provides advanced engineering and R&D services in the areas of ISR, military training and simulation, cyber, data analytics and other next-generation technology based solutions to the DOD and intelligence community customers, with the US Navy representing about one third of current annual revenues.
“Today’s announcement, coupled with our previous investments in leading edge technologies, such as cybersecurity and autonomous systems, reflects our commitment to stay on the cutting edge of critical, high-growth national security solutions and generate significant long-term value for our shareholders,” said Mike Petters, HII’s president and CEO.
“The combination of Alion and our Technical Solutions business represents a significant value creation opportunity that broadens our capabilities and customer access in our target markets,” said Andy Green, HII executive vice president and president of Technical Solutions. “The experienced Alion team and the highly complementary solutions and products they provide are consistent with the strategic vision we have articulated for the Technical Solutions business, and we are excited about the significant growth potential this combination represents.”
Alion’s strengths in enabling and supporting navy simulation and training are closely aligned with existing Huntington Ingalls Industries capabilities and customers, the company said in a statement.