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Carlyle to buy U.S. defense contracting firm ManTech for USD 4 billion

Carlyle to buy U.S. defense contracting firm ManTech for USD 4 billion
Carlyle to buy U.S. defense contracting firm ManTech for USD 4 billion

ManTech International Corporation, which provides technology services such as cyber security and intelligence to the U.S. government, is reportedly being acquired by private equity firm the Carlye Group for about USD 4 billion.

 

George Pederson, ManTech's co-founder, had been exploring options regarding his stake in the company. Eventfully, the company's stock has since risen by 11%.

 

For those unaware, Pedersen co-founded ManTech in 1968 and served as its CEO until 2018. He then stepped down from his position as the company's chairman in February making Kevin Phillips the newest CEO and Chairman. Interestingly, Pedersen's family still owns almost half of the company's stock.

 

Sources close to the matter revealed that the deal between ManTech and the private equity firm could be announced as early as this week. However, it was indicated that the agreement could still fall apart.

 

It is worth noting that the acquisition activity in the defense sector has been on a roller-coaster ride since Lockheed Martin's plan to buy Aerojet Rocketdyne was called off in February due to objections entailed by the US antitrust enforcers.

 

After the deal was abandoned, the Biden administration released a report highlighting the need for competition in the defense industry claiming that accelerated mergers have conjured up serious risks to the country.

 

ManTech, which is based in Fairfax, Virginia, and has an employee base of nearly 9,400 asserted that this year its first-quarter net income increased to USD 31 million from USD 32 million a year earlier. The stock of ManTech closed at USD 81.97 on Friday i.e., 13th May, registering a 12% raise, and giving the company a market value of around USD 3.4 billion.

 

Carlyle Group stated that it has been an active investor in the government services industry. Recently, it sold its stake in Novetta, an advanced analytics group, to the management of consulting firm Accenture plc.

 

Source Credit –

https://money.usnews.com/investing/news/articles/2022-05-15/carlyle-in-talks-to-buy-u-s-defense-contractor-mantech-bloomberg-news

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Vinisha Joshi

Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for cuereport.com and a few other distinguished news platforms, pertaining to business and finance.