Leidos (NYSE:LDOS) has signed a definitive agreement to acquire ENTRUST Solutions Group for approximately $2.4 billion, marking its largest acquisition in six years and signaling an aggressive push into the booming U.S. energy infrastructure sector.
The all-cash transaction, announced Monday, will see the Reston, Virginia-based defense and technology giant absorb ENTRUST from private equity firm Kohlberg & Co.
The deal effectively doubles Leidos’ existing $600 million energy infrastructure engineering unit, creating a combined powerhouse of more than 5,500 energy professionals across North America.
The acquisition comes as U.S. utilities face mounting pressure to modernize aging electrical grids to support artificial intelligence data centers, electric vehicle charging, and renewable energy integration—a transformation expected to require $1 trillion in investment over the next decade.
While Leidos has traditionally focused on transmission and distribution for electric utilities, ENTRUST brings specialized expertise in gas utilities and electric generation.
"ENTRUST’s engineering capabilities and customer base perfectly complement ours," Leidos CEO Tom Bell said in a statement.
"This deal is a bold step forward in support of a national priority to expand America’s energy infrastructure while improving reliability against extreme weather events."
Financially, the deal is structured to provide an immediate boost.
Leidos expects the transaction to be accretive to revenue growth and adjusted EBITDA margins upon closing, which is targeted for the end of the second quarter of 2026.
Accretion to non-GAAP diluted earnings per share is projected for 2027.
The move marks Leidos' most significant M&A activity since its 2020 purchase of Dynetics and its 2016 merger with Lockheed Martin’s IT business.