Leidos to Acquire ENTRUST Solutions Group in $2.4 Billion Deal
Leidos has entered into a definitive agreement to acquire ENTRUST Solutions Group from private equity firm Kohlberg in a transaction valued at approximately $2.4 billion, a move that significantly expands Leidos’ footprint in utility-focused engineering services.
The acquisition will roughly double the size of Leidos’ energy infrastructure engineering business, which currently generates about $600 million in annual revenue. Leidos has steadily grown this segment over the past several years as electric and gas utilities increase investment in grid modernization, reliability, and resilience.
Leidos has provided engineering services to commercial electric utilities for more than two decades, with a focus on transmission and distribution systems. ENTRUST brings complementary capabilities spanning electric and gas infrastructure, from generation through transmission and distribution. Combined, the two organizations will support a broader range of utility customers across the power delivery spectrum.
Leidos Chief Executive Officer Tom Bell said the acquisition aligns with the company’s long-term growth strategy and national infrastructure priorities, particularly as utilities address aging assets and the impacts of extreme weather. ENTRUST CEO Adam Biggam said the transaction brings together engineering teams and technical resources to address increasingly complex utility and power market challenges.
Following the acquisition, the combined organization will include more than 5,500 energy professionals focused on power and energy infrastructure engineering.
The transaction reflects broader trends across the U.S. utility sector, where investment in grid modernization continues to accelerate. U.S. utilities are projected to invest approximately $1 trillion over the next decade to meet rising electricity demand, integrate new technologies, and strengthen grid security and reliability.
Transaction Details
Leidos said the acquisition is expected to be immediately accretive to revenue growth and adjusted EBITDA margin, with accretion to non-GAAP diluted earnings per share anticipated in 2027. The all-cash transaction will be funded through a combination of new debt, existing cash, and commercial paper.
Approvals and Timing
The transaction is expected to close by the end of the second quarter of 2026, subject to customary closing conditions, including regulatory approvals.
Leidos is being advised by Citi as financial advisor, Davis Polk & Wardwell LLP as legal advisor, and PwC as accounting advisor.