Technical and engineering services company Amentum has finalized its acquisition of PAE Incorporated, a Falls Church, Virginia-based global defense contractor.
The company announced Tuesday that it will complete the absorption of PAE and its outstanding shares of common stock for an estimated all-cash sale of $1.9 billion.
“We look forward to bringing the best people and the most differentiated solutions to support our clients’ success across defense and civilian agencies, while accelerating our growth in intelligence and technology services,” said Amentum CEO John Vollmer, a seven-time Wash100 Award recipient.
The companies’ combined forces are expected to bolster Amentum’s arsenal of services surrounding synthetic training, sensor-based technologies, intelligence and space operations.
PAE’s addition to Amentum’s stable is also intended to build on work with cyber and information technology, as well as satellite communication connectivity, environmental services, asset management and mission support.
The transaction results in a combined revenue of over $9 billion for Amentum for the last year as well as reportedly making it the second-largest provider of services to the U.S. government. They now employ over 50,000 people.
ExecutiveBiz published an interview on Tuesday with Vollmer where he spoke about the PAE acquisition, in addition to Amentum’s recent $462 million Navy contract, among other subjects.
In terms of the impacts of acquiring PAE, Vollmer shared, “Amentum will deepen its existing customer relationships at the Department of State, Department of Homeland Security, NASA and will allow us to bring additional capabilities as we continue to grow our intelligence and technology business.”
Amentum was created in February 2020 as an outgrowth of the management services arm of AECOM. The company also acquired military contractor DynCorp International in September 2020.
