The transaction, which was approved by PAE’s board of directors and is expected to close by the end of the first quarter of 2022, will create a federal services enterprise with over $9 billion in combined revenue over the last year, Amentum said Monday.
“The acquisition of PAE complements Amentum’s growth into intelligence and technology services, deepens its relationship with key agencies such as the Department of State, NASA and the Intelligence Community, and meaningfully adds to Amentum’s scale, depth of client relationships and breadth of capabilities,” said John Vollmer, CEO of Amentum and six-time Wash100 Award winner.
The business combination will provide enhanced capabilities across a range of intelligence, cyber, IT, mission support, space operations, spectrum and electronic warfare, sensor-based technologies and asset management services to its combined U.S. federal and allied government customer base.
Charles Peiffer, interim president and CEO of PAE, said, “Aided by an attractive demand environment and PAE’s diversification across its customer base, contract portfolio and geographic reach, combining with Amentum is expected to provide our customers a wide array of capabilities and services via a broad range of contracting vehicles.”
As a part of the merger’s terms, PAE shareholders will be entitled to $10.05 per share in cash upon the finalization of the transaction, which is subject to PAE shareholder approval, regulatory approval and customary closing conditions.
Additionally, the purchase price of this agreement is a 70 percent premium over PAE’s closing price on Oct. 22.