Huntington Ingalls to acquire cybersecurity, R&D company Alion for $1.7B
Shipbuilding defense contractor Huntington Ingalls will pay $1.7 billion to acquire cybersecurity and research and development company Alion.
In a statement, Huntington said the deal would allow it to expand its work to support Navy simulation and training work, as well as operations that support military intelligence, surveillance and reconnaissance.
The company added that the transaction is expected to expand Huntington’s technical solutions division, which was launched in 2016 to focus on cybersecurity and autonomous systems. Alion has a $3 billion contract backlog and employs 3,500 staff, of whom 80% have security clearance.
Huntington Ingalls provides professional services to the government and private sector and is also the largest military shipbuilding company in the U.S. It has expanded its cybersecurity and digital intelligence practice amid growth in the demand for such services from the federal government.
Commenting on the transaction, Huntington President and CEO Mike Peters said: “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.”
The transaction is likely to close in the second half of 2021, subject to regulatory approval.
