Leidos Holdings announced a $2.4 billion all‑cash purchase of ENTRUST Solutions Group, a leading utility consulting and engineering services platform. The transaction will double Leidos’ energy‑infrastructure engineering business to an estimated $1.3 billion in annual revenue, up from roughly $600 million before the deal.
ENTRUST brings 3,100 employees and 40 North American locations to the combined company. Its standalone revenue of about $716 million, combined with Leidos’ existing $600 million energy business, creates a $1.3 billion revenue stream that is already growing at double‑digit rates and enjoys healthy margins.
The $2.4 billion cash outlay will be funded through a mix of new debt, existing cash, commercial paper, and a $1.4 billion bridge credit facility from Citigroup Global Markets. The parties expect the transaction to close in the second quarter of 2026.
Strategically, the acquisition aligns with Leidos’ NorthStar 2030 plan to shift toward higher‑margin fixed‑price contracts and to strengthen its position in the U.S. utilities market, which is projected to invest $1 trillion over the next decade. By adding ENTRUST’s capabilities, Leidos will broaden its client base and deepen its presence across the power delivery spectrum—from generation to transmission and distribution.
Leidos’ AI expertise will be leveraged in the utility sector, while ENTRUST’s data and analytics complement Leidos’ AI platform. The combination is expected to create cross‑selling opportunities and accelerate the deployment of AI‑driven solutions in grid modernization, renewable integration, and data‑center power demand.
This acquisition is Leidos’ largest purchase since its 2016 acquisition of Lockheed Martin’s IT business. Management expects the deal to be accretive to non‑GAAP diluted earnings per share in 2027, positioning Leidos to capture growth in a market poised for massive investment.
Tom Bell, Leidos CEO, said the deal “perfectly complements our capabilities and accelerates our growth strategy.” Adam Biggam, ENTRUST CEO, described the combination as a “leading end‑to‑end infrastructure platform.” Roy Stevens, president of Leidos’ homeland security sector, highlighted the accelerated growth potential driven by rising power demand for AI and data centers.
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