Leidos Acquires Entrust Solutions for $2.4 Billion to Expand Energy Infrastructure
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: stocktwits
- Acquisition Overview: Leidos has signed a definitive agreement to acquire Entrust Solutions Group from Kohlberg for $2.4 billion, with the transaction expected to close by the end of the second quarter of 2026, aimed at expanding its energy infrastructure capabilities.
- Growth Potential: This acquisition will effectively double the size of Leidos' $600 million energy infrastructure engineering business, which has averaged double-digit growth and margins over the past eight years, indicating strong market demand.
- Funding Strategy: Leidos plans to finance the all-cash transaction through a combination of new debt, cash on hand, and commercial paper, ensuring flexibility and sustainability of funds to support its expansion strategy.
- Strategic Importance: CEO Tom Bell stated that this acquisition is a bold step forward in support of the company's growth strategy, aimed at enhancing the reliability and resilience of America's energy infrastructure against aging systems and extreme weather events.
Analyst Views on LDOS
Wall Street analysts forecast LDOS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LDOS is 219.70 USD with a low forecast of 178.00 USD and a high forecast of 235.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
7 Buy
4 Hold
0 Sell
Moderate Buy
Current: 189.500
Low
178.00
Averages
219.70
High
235.00
Current: 189.500
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.
