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Huntington Ingalls Industries to Acquire Alion Science and Technology For $1.65B; Andy Green Quoted

2 mins read
Andy Green
Andy Green EVP

Huntington Ingalls Industries (HII) announced on Tuesday that the company has entered into a definitive agreement to acquire Alion Science and Technology for $1.65 billion in cash from Veritas Capital, subject to customary adjustments. Alion is a technology-driven solutions provider for the global defense marketplace. 

The transaction constitutes an enterprise value-to-expected 2022 adjusted EBITDA1 multiple of approximately 12.2x. It will make Alion a part of Huntington Ingalls Industries’ Technical Solutions division and is expected to close in the second half of 2021.

“The combination of Alion and our Technical Solutions business represents a significant value creation opportunity that broadens our capabilities and customer access in our target markets,” commented Andy Green, HII's executive vice president and president of Technical Solutions. 

“The experienced Alion team and the highly complementary solutions and products they provide are consistent with the strategic vision we have articulated for the Technical Solutions business, and we are excited about the significant growth potential this combination represents,” added Green, a 2021 Wash100 Award recipient. 

Alion provides innovative advanced engineering and R&D services in ISR, military training and simulation, cyber, data analytics and other next-generation technology-based solutions to Department of Defense (DOD) and Intelligence Community customers, with the U.S. Navy representing approximately one-third of the company’s annual revenues. 

Alion is expected to continue growing with over $3 billion in backlog, over $5 billion in estimated contract value and a notable opportunity pipeline. The company employs more than 3,2000 professionals, with over 80% of employees maintaining security clearances.

The acquisition will create over $2.6 billion revenue products and solutions business. It also creates substantial revenue and value creation opportunities over the long term, further positioning the Technical Solutions division as HII’s growth driver. 

The transaction is expected to close in the second half of 2021, subject to the satisfaction of customary closing conditions, including regulatory approvals.

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