Huntington Ingalls to buy Alion Science and Technology for $1.65 billion

WASHINGTON ― Huntington Ingalls Industries declared Tuesday an arrangement to acquire Alion Science and Technologies for $1.65 billion in cash from Veritas Money ― the most recent in a string of acquisitions for the military services shipbuilding titan.

“Today’s announcement, coupled with our earlier investments in top-edge systems, these kinds of as cybersecurity and autonomous techniques, displays our commitment to keep on the chopping edge of essential, substantial-advancement countrywide stability alternatives and create substantial long-time period price for our shareholders,” said HII’s main executive, Mike Petters.

The announcement observed that Alion provides advanced engineering exploration and enhancement providers in the areas of intelligence, surveillance and reconnaissance armed service training and simulation cyber alternatives and details analytics. The U.S. Protection Section and intelligence group are its customers, and the Navy signifies about a single-third of its yearly revenues.

The transaction with Veritas, of New York Metropolis, is expected to near in the second half of 2021, subject matter to customary closing conditions. Alion, dependent in McLean, Virginia, would develop into part of Huntington Ingalls Industries’ Specialized Remedies division. HII, dependent in Newport News, Virginia, is America’s most significant military services shipbuilder.

HII explained it expects Alion to contribute fiscal 2022 profits of about $1.6 billion and modified earnings in advance of desire, taxes, depreciation and amortization of about $135 million.

The offer follows HII’s acquisition of Spatial Integrated Systems’ autonomy enterprise in January. Very last year, HII obtained Hydroid launched a a strategic alliance with Kongsberg Maritime made an fairness investment decision in Sea Equipment Robotics of Boston and broke ground on a new HII Unmanned Methods Middle of Excellence in Hampton, Virginia, in September.