Leidos To Buy Entrust Solutions For $2.4B To Expand Energy Infrastructure

• LDOS’s energy infrastructure engineering business has grown on average at double-digit rates while delivering double-digit margins for the past eight years.
• The transaction is expected to be immediately accretive to Leidos' revenue growth and adjusted EBITDA margin.
• Leidos expects to fund the all-cash $2.4 billion transaction through a combination of new debt, cash on hand and commercial paper.

Leidos Holdings Inc. (LDOS) on Monday signed a definitive agreement to acquire Entrust Solutions Group from Kohlberg in a $2.4 billion deal, in a bid to expand its energy infrastructure capabilities. 

The acquisition will add new capabilities and effectively double the size of Leidos' $600 million energy infrastructure engineering business, which has grown on average at double-digit rates while delivering double-digit margins for the past eight years.

Leidos expects to fund the all-cash transaction through a combination of new debt, cash on hand, and commercial paper.

The transaction is expected to close by the end of the second quarter of 2026.

Deal Details

The transaction is expected to be immediately accretive to Leidos' revenue growth and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin and accretive to non-GAAP diluted earnings per share in 2027.

"ENTRUST's engineering capabilities and customer base perfectly complement ours, and it has a consistent track record of growth and strong profitability," said Leidos Chief Executive Officer Tom Bell.

"This deal is a bold step forward in support of Leidos' growth strategy and a national priority to expand America's energy infrastructure, while improving reliability and resilience against aging systems and extreme weather events," Bell added.

Engineering and technology for secure energy infrastructure is a strategic focus for Leidos under its NorthStar 2030 growth strategy. 

U.S. utilities are projected to invest $1 trillion over the next decade in a modernization surge to meet growing demands for power and a national priority to strengthen and secure the U.S. electrical grid.

How Did Stocktwits Users React?

Retail sentiment around LDOS stock trended in the ‘neutral’ territory over the past 24 hours amid ‘high’ message volume. 

Shares of the company have risen nearly 30% over the past year. 
 

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