WASHINGTON ― Huntington Ingalls Industries announced Tuesday an agreement to buy Alion Science and Technology for $1.65 billion in cash from Veritas Capital ― the latest in a string of acquisitions for the military shipbuilding titan.
“Today’s announcement, coupled with our previous investments in leading-edge technologies, such as cybersecurity and autonomous systems, reflects our commitment to stay on the cutting edge of critical, high-growth national security solutions and generate significant long-term value for our shareholders,” said HII’s chief executive, Mike Petters.
The announcement noted that Alion provides advanced engineering; research and development services in the areas of intelligence, surveillance and reconnaissance; military training and simulation; cyber solutions; and data analytics. The U.S. Defense Department and intelligence community are its customers, and the Navy represents about one-third of its annual revenues.
The transaction with Veritas, of New York City, is expected to close in the second half of 2021, subject to customary closing conditions. Alion, based in McLean, Virginia, would become part of Huntington Ingalls Industries’ Technical Solutions division. HII, based in Newport News, Virginia, is America’s largest military shipbuilder.
HII said it expects Alion to contribute fiscal 2022 revenue of about $1.6 billion and adjusted earnings before interest, taxes, depreciation and amortization of about $135 million.
The deal follows HII’s acquisition of Spatial Integrated Systems’ autonomy business in January. Last year, HII acquired Hydroid; launched a a strategic alliance with Kongsberg Maritime; made an equity investment in Sea Machines Robotics of Boston; and broke ground on a new HII Unmanned Systems Center of Excellence in Hampton, Virginia, in September.