T3 Leidos, one of the biggest government contractors that do technology and engineering work, has made a pretty cool announcement. They intend to purchase ENTRUST Solutions for $2.4 billion! Leidos continues with a strategic initiative of deepening its reach and capabilities in the utility and power markets. By joining forces with ENGTRUST, an industry leader with more than 3,000 professionals in 40 locations throughout North America, they’ll solidify their collaborative impact on the industry.
The deal is an important step for Kohlberg, which first purchased ENTRUST in 2019. The recent sale, at least in part, indicates an exit strategy for Kohlberg after a minority ENTRUST recapitalization finished earlier this year. Financial advisers Houlihan Lokey and Perella Weinberg Partners advised Kohlberg on the deal. At the same time, Ropes & Gray acted as legal counsel, and KPMG acted as accounting adviser.
We expect to close the transaction by the end of Second Quarter in 2026. This is subject to reaching customary closing conditions and obtaining regulatory approvals. Leidos will fund the purchase with a combination of new debt, cash on hand, and commercial paper. This strategy further enables Leidos to blend ENTRUST’s operations right into the company.
Together, we’ll be an even more powerful force with more than 5,500 energy and environment specialists. Together, this expanded workforce will allow the new company to compete more aggressively and address the complicated challenges in the utility and power markets. ENTRUST’s unique platform, which integrates business intelligence with editorial excellence, complements Leidos’ existing capabilities and broadens its reach within the industry.
ENTRUST’s CEO Adam Biggam released a statement on the merger, saying,
“By joining Leidos, we are uniting world-class power and energy engineering expertise to create a leading end-to-end infrastructure platform. Our combined 5,500-plus energy professionals will have the resources, technology, and reach to tackle the most complex challenges facing the utility and power markets today.”
The newly merged company will unite unprecedented resources, groundbreaking technology, and specialized expertise. Together, this collaboration will accelerate advanced solutions for clients leading the way through the complex, evolving energy infrastructure landscape. The unified company will reach 36 industry-defining media platforms. We believe this will significantly improve its capacity to stimulate dialogue with professionals throughout the sector.