Huntington Ingalls Industries, the largest military shipbuilding company in the US, is set to acquire the Department of Defense contractor Alion Science and Technology as part of an expansion of their national security solutions portfolio, the company announced on Tuesday.
“Huntington Ingalls Industries (NYSE:HII) announced today that it has entered into a definitive agreement to acquire Alion Science and Technology for $1.65 billion in cash from Veritas Capital, subject to customary adjustments. Alion is a high value-added, technology-driven solutions provider for the global defense marketplace,” the company said in a press release.
They added that they plan on integrating Alion into Huntington Ingalls Industries’ Technical Solutions division and that they anticipate the transaction to close in the latter half of 2021.
Alion provides advanced engineering, research, and development for intelligence, surveillance, and reconnaissance systems, military training and simulation, cyber, data analytics and other next-generation technologies for the military and intelligence communities. The US Navy currently represents about one-third of the company’s annual revenues.
Huntington Ingalls said that the acquisition is a ‘compelling strategic fit’ for the company, with Alion’s capabilities and customer access aligning with their own, in particular, highlighting Alion’s strength in enabling and supporting naval simulations.