Leidos to Acquire ENTRUST Solutions Group for $2.4B
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: seekingalpha
- Acquisition Scale: Leidos is acquiring ENTRUST Solutions Group for approximately $2.4 billion, significantly expanding its market share in the energy infrastructure engineering sector by effectively doubling its business size from $600 million, thereby enhancing its competitiveness in the growing utility budgets.
- Financial Impact: The acquisition is expected to be immediately accretive to Leidos' revenue growth and adjusted EBITDA margin, with anticipated gains in non-GAAP diluted earnings per share by 2027, indicating strong profit potential.
- Funding Sources: Leidos plans to finance the all-cash transaction through a combination of new debt, cash on hand, and commercial paper, demonstrating the company's flexibility in capital management and financial robustness.
- Transaction Timeline: The deal is expected to close by the end of the second quarter of 2026, and Leidos will host a conference call today at 8:00 a.m. ET to further discuss the strategic implications and future outlook of the acquisition.
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.
