Military shipbuilding firm Huntington Ingalls Industries Inc said on Tuesday it plans to buy Alion Science and Technology for $1.65 billion in cash from Veritas Capital to boost its security solutions portfolio.
Alion provides engineering and R&D services to the United States Department of Defense and will become part of Huntington’s technical solutions unit following the completion of the deal.
The deal is expected to better position Huntington in advanced military training and simulation, artificial intelligence and electronic warfare.
The company expects Alion to add about $1.6 billion to its fiscal 2022 revenue.
Huntington shares were up about 1% at $213.38 in premarket trading.
Source: Reuters.com