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Huntington Ingalls Industries to acquire Alion Science and Technology

6th July 2021 - 18:30 GMT | by The Shephard News Team

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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. 

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