Huntington Ingalls Industries announced this week that it entered a definitive agreement to purchase Aion Science and Technology from Veritas Capital for $1.65 billion in cash, providing further inroads for Huntington into the global defense marketplace.
As a result of the agreement, Alion will become part of Huntington’s Technical Solutions division, where its advanced engineering and research and development capabilities will support the company’s technical capabilities for security efforts such as advanced military training and simulation, artificial intelligence, big data, and electronic warfare. Along with it, Alion brings more than $5 billion in estimated contract value and more than 3,200 employees.
“The combination of Alion and our Technical Solutions business represents a significant value creation opportunity that broadens our capabilities and customer access in our target markets,” Andy Green, HII executive vice president and president of Technical Solutions, said. “The experienced Alion team and the highly complementary solutions and products they provide are consistent with the strategic vision we have articulated for the Technical Solutions business, and we are excited about the significant growth potential this combination represents.”
HII hopes to position itself for future Department of Defense and, specifically, U.S. Navy modernization and readiness priorities. Huntington is, on its own, already America’s largest military shipbuilding company. According to HII President and CEO Mike Petters, the company is pushing hard on a commitment to cutting-edge, critical, high-growth national security solutions. The U.S. Navy represents about one-third of Alion’s current annual revenues.
The sale is expected to close in the second half of the year, subject to customary closing conditions and regulatory approvals.