Leidos to Acquire ENTRUST for $2.4 Billion Cash Deal, Aiming to Turbocharge Energy Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 01 2026
0mins
Source: Yahoo Finance
- Acquisition Overview: Leidos plans to acquire ENTRUST for $2.4 billion in cash, adding approximately 3,100 employees and positioning Leidos as a top-four U.S. provider in power and transmission engineering, with the transaction expected to close in Q2 2026.
- Financial Impact Analysis: The acquisition is projected to generate about $650 million in annual revenue for Leidos, with the purchase price implying a multiple of 16x ENTRUST's next-12-month EBITDA, and is expected to significantly boost adjusted EPS in 2027.
- Strategic Integration Advantages: Leidos aims to enhance its market position in energy infrastructure engineering services through this acquisition, with CEO Tom Bell emphasizing that the deal aligns closely with the company's “North Star 2030” strategy to meet rising customer demand.
- Synergy Expectations: Leidos anticipates achieving “tens of millions” in synergy benefits by leveraging cross-selling opportunities in cybersecurity and IT services, while maintaining cultural compatibility to support rapid integration during the process.
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Analyst Views on LDOS
Wall Street analysts forecast LDOS stock price to rise
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 126.010
Low
178.00
Averages
219.70
High
235.00
Current: 126.010
Low
178.00
Averages
219.70
High
235.00
About LDOS
Leidos Holdings, Inc. is a holding company, which operates through its wholly owned subsidiary, Leidos, Inc. (Leidos). The Company's segments include National Security & Digital, Health & Civil, Commercial & International and Defense Systems. Its National Security & Digital business provides technologically advanced services, solutions and products, as well as mission software capabilities for defense and intelligence customers in the areas of cyber, logistics, security operations and decision analytics. Its Health & Civil business provides services and solutions to federal and commercial customers in the areas of public health, care coordination, life and environmental sciences and transportation. Its Commercial & International business delivers a portfolio of products, services, and solutions aimed at securing national assets, modernizing energy and critical infrastructure, and enhancing mission outcomes. The Company serves government and commercial customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Testing and Evaluation Plan: The agreements outline an experimentation campaign set to begin in mid-2026, with test missiles acquired from participating companies, and the results will inform formal military assessments that will influence full-scale procurement decisions, ensuring alignment with military demand.
- New Industry Participation Model: Some participating companies are expected to reach production scale through private capital investment rather than direct government funding, marking a shift in defense procurement models aimed at accelerating weapons development and procurement processes.
- Industrial Capacity Enhancement: This initiative is part of a broader effort to increase U.S. munitions production capacity, focusing on creating a flexible industrial base capable of scaling output during periods of heightened demand, reflecting the Pentagon's ongoing interest in leveraging commercial manufacturing approaches.
See More
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- Production Capacity Expansion: The company will expand its facilities in Huntsville, Alabama, and McEwen, Tennessee, to support LCCM production, with production expected to begin in 2027, reflecting Leidos' commitment to advancing operational capabilities.
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