Veritas Capital and Northrop Grumman Corporation have announced that Peraton, an affiliate of Veritas Capital, has signed a definitive agreement to acquire Northrop Grumman’s federal IT and mission support services business for US$3.4 billion in cash. The transaction is expected to close in the first half of 2021, subject to regulatory approvals and customary closing conditions.
For 2020 the Northrop Grumman business, in aggregate, is expected to generate revenue of approximately US$2.3 billion. Northrop Grumman expects to use the sale proceeds primarily for share repurchases, to offset dilution from the transaction, and for debt retirement. On closing, Veritas expects to combine the Northrop Grumman business with Peraton, a Veritas portfolio company that provides mission critical technology solutions to government customers. “This divesture allows us to drive value and reflects our strategy of focus on growing core businesses where technology and innovation are the key differentiators,” said Kathy Warden, chairman, chief executive officer and president, Northrop Grumman. “We expect to create compelling value to our shareholders through this transaction and execution of our capital allocation strategy.”
