Mergers & Acquisitions

Mergers & Acquisitions

August 17, 2011

General Dynamics Signs Agreement to Acquire Vangent from Veritas Capital

General Dynamics (News - Alert) announced its definitive agreement to acquire Vangent Holding, a provider of healthcare information-technology and business systems to federal agencies, for a consideration of $960 million.

After the cash transaction, Vangent will become part of General Dynamics Information Technology, which has been providing healthcare information-technology systems and solutions to federal, commercial and military customers. Vangent is majority-owned by the Veritas Capital Fund.  

The proposed acquisition would be accretive to General Dynamics' earnings in 2012.  The transaction is expected to close by October 1.

“Vangent is a well-regarded, fast-growing company that will add significant depth and breadth to General Dynamics' healthcare IT organization, creating a Tier 1-level healthcare IT business unit with the scope and scale to compete in markets that are receiving high priority in current funding and entitlement-reform initiatives,” said Jay L. Johnson, chairman and chief executive officer of General Dynamics, in a statement.

 “Increasingly agencies will rely on efficient, modern business and information systems as key enablers of their citizen-service missions, and Vangent is a leader in meeting those information technology and business system requirements,” Johnson added.

Vangent’s offerings include health informatics and information exchange, electronic health records and data analytics, as well as state-of-the-art business-process outsourcing solutions.  Vangent has more than 7,500 employees.

With approximately 17,000 professionals worldwide, General Dynamics Information Technology manages large-scale, mission-critical programs delivering IT services and enterprise solutions.

Recently, General Dynamics Information Technology announced that it won a $178 million Defense Intelligence Agency's Solutions for the Information Technology Enterprise contract. Under the contract, General Dynamics Information Technology has been awarded a task order to provide enterprise communication services to the Defense Intelligence Agency. The task order is for five years.

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Rajani Baburajan is a contributing editor for TMCnet. To read more of Rajani's articles, please visit her columnist page.

Edited by Rich Steeves

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