Huntington Ingalls Industries to acquire Alion Science and Technology
Alion's engineers develop and integrate solutions that help joint warfighters win decisively as part of multi-domain combat operations. (Photo: Alion Science and Technology)
Huntington Ingalls Industries has announced that it has entered into a contract to acquire Alion Science and Technology.
Huntington Ingalls Industries has entered into a definitive agreement to acquire Alion Science and Technology for $1.65billion in cash from Veritas Capital, subject to customary adjustments.
Alion is a high value-added, technology-driven solutions provider for the global defence marketplace.
The transaction represents an enterprise value-to-expected 2022 adjusted EBITDA multiple of approximately 12.2x.
EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortisation and is a metric used to evaluate a company’s operating performance.
Alion provides advanced engineering and R&D services in the areas of ISR, military training and simulation, cyber, data analytics and other next-generation technology-based solutions.
Existing customers include the US DoD, intelligence community customers and the USN, which represents about one-third of current annual revenue.
Alion is poised for continued strong growth with over $3billion in backlog today, more than $5billion in estimated contract value and a robust opportunity pipeline.
This acquisition will enhance HII’s technical capabilities and positions the company in high-growth mission-critical security solutions, such as C5ISR, advanced military training and simulation, artificial intelligence, big data and electronic warfare.
You may also like
More from Defence Notes
-
![US speeds up B61-13 nuclear bomb production as programme moves further ahead of schedule]()
US speeds up B61-13 nuclear bomb production as programme moves further ahead of schedule
The US government plans to accelerate production even further after achieving key B61-13 milestones months ahead of schedule, as the programme advances amid growing US-China strategic competition.
-
![New UK armed forces minister frames High North defence as vital to “homeland security”]()
New UK armed forces minister frames High North defence as vital to “homeland security”
The UK’s Minister for the Armed Forces Louise Sandher-Jones made her first appearance in the role before the House of Commons Defence Committee this week to highlight efforts to improve capability in the High North.
-
![Canada seeks to strengthen industrial ties with the US on classified programmes]()
Canada seeks to strengthen industrial ties with the US on classified programmes
Ottawa explores expanding defence-industrial cooperation with Washington into sensitive programmes, an approach that could reshape NORAD modernisation, strengthen North American supply chains and create new opportunities for defence contractors.
-
![UK’s latest defence robotics and autonomy competition looks to break new ground]()
UK’s latest defence robotics and autonomy competition looks to break new ground
The UK Ministry of Defence is backing early-stage, high-risk autonomy concepts that could redefine how military systems are developed and deployed.
-
![How AI is reshaping defence procurement through sustainment]()
How AI is reshaping defence procurement through sustainment
Artificial intelligence is not just changing how defence equipment is maintained but how defence programmes are won, creating new opportunities for industry by influencing acquisition decisions and shaping competition.
