Science Applications International Corp. (NYSE: SAIC) announced today that it has entered into a definitive agreement to acquire Halfaker and Associates, LLC, a leading federal health technology solutions provider, for $250 million, growing the company's digital transformation portfolio.
Halfaker is headquartered in Arlington, Virginia, with an Agile Delivery Center in Clearwater, Florida. The company is known for its ability to create, modernize, integrate, and secure mission critical systems for federal government customers. Halfaker has a strong culture of service, rooted in the desire to make a difference in the lives of its community, veterans, and wounded warriors.
"This acquisition reinforces SAIC's commitment to supporting the government healthcare mission, including our strong support for the health and wellbeing of veterans. It further accelerates SAIC's profitable growth, brings key diverse talent, and offers access to strategic customers and contract vehicles within health IT for the DOD and federal government," said SAIC CEO Nazzic Keene. "Halfaker is a strong cultural fit with mission-focused talent, and enhances our ability to support our customers' digital transformation needs and positions SAIC to be an innovative technology solutions provider into the future."
"I am excited to embark on this next chapter of Halfaker's mission to continue to serve," said Halfaker President and CEO Dawn Halfaker. "The alignment of SAIC's culture and values with this important mission has been critical in making the decision to join forces and successfully bolster the services we provide our customers with even greater digital transformation capacity and scalability. This acquisition enables our delivery teams to maintain our customer-centric focus while exponentially increasing our ability to provide the technical depth and top technical talent needed to meet the government's most pressing challenges."
Strategic Alignment to Digital Transformation
Halfaker brings advanced end-to-end digital solutions that further transform and empower customer decision-making through modernization and optimization. Halfaker is an established, leading provider of digital services, data analytics, cybersecurity, and cloud solutions to the Department of Veterans Affairs (VA), Department of Defense, Department of Health and Human Services, the Centers for Medicare and Medicaid services, and other notable customers. Halfaker is also a top 5 IT provider by awarded task orders on the VA's Transformation Twenty-One Total Technology Next Generation (T4NG) acquisition program.
Together, SAIC and Halfaker's solutions strengthen the company's robust digital transformation portfolio in areas such as DevSecOps, digital engineering, automation, and process improvement.
SAIC expects the transaction to be accretive to its revenue growth rate, adjusted diluted earnings per share, and free cash flow in fiscal year 2022. SAIC expects to fund the $250 million cash transaction through a combination of cash on hand and incremental debt.
The transaction is expected to close by the end of SAIC's second quarter of fiscal year 2022, ending July 30, 2021, subject to customary closing conditions.
Robert W. Baird & Co. acted as the exclusive financial advisor to Halfaker and Associates on this transaction, and Crowell & Moring LLP served as legal counsel. King & Spalding LLP served as legal counsel to SAIC.
SAIC® is a premier Fortune 500® technology integrator driving our nation's technology transformation. Our robust portfolio of offerings across the defense, space, civilian, and intelligence markets includes secure high-end solutions in engineering, digital, artificial intelligence, and mission solutions. Using our expertise and understanding of existing and emerging technologies, we integrate the best components from our own portfolio and our partner ecosystem to deliver innovative, effective, and efficient solutions that are critical to achieving our customers' missions.
We are more than 26,000 strong; driven by mission, united by purpose, and inspired by opportunities. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $7.2 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.
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