NEWPORT NEWS—Huntington Ingalls Industries announced recently that it has entered into a definitive agreement to acquire Alion Science and Technology for $1.6 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 transaction is expected to close in the second half of 2021, subject to customary closing conditions.
Alion provides advanced engineering and Research & Development services in the areas of intelligence, surveillance, and reconnaissance (ISR), military training and simulation, cyber, data analytics, and other next-generation technology-based solutions to the Department of Defense (DOD) and intelligence community customers, with the U.S. Navy representing about one-third of current annual revenues. Alion is poised for continued strong growth with more than $3 billion in backlog today, with more than $5 billion in estimated contract value, and a robust opportunity pipeline. Alion has more than 3,200 employees with more than 80 percent of employees maintaining security clearances.
“We established the Technical Solutions division in 2016 with a vision and strategy on partnering with our customers to solve their most pressing challenges,” said Mike Peters, HII’s President and CEO. “This 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.”
Andy Green, HII Executive Vice President and President of Technical Solutions echoed those sentiments. “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. The experienced Alion team and the highly complementary solutions and products they provide are consistent with the strategic visions we have articulated for the Technical Solutions business, and we are excited about the significant growth potential this combination represents.”