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Exclusive - U.S. government contractor Engility explores sale: sources

Reuters  |  WASHINGTON 

By Mike Stone

WASHINGTON (Reuters) - U.S. Holdings Inc is exploring a sale, amid a wave of consolidation in the services sector, three people familiar with the matter said on Wednesday.

The development is the latest example of how increased defence spending under Donald Trump and the is driving contractors to pursue mergers so that they have more scale to bid on bigger projects, spanning everything from to antiquated cyber security.

has attracted interest from companies that include International Inc and (SAIC), though deliberations are at an early stage and may not lead to a deal, two of the sources said.

The sources asked not to be identified because the talks are confidential. Representatives from and did not immediately respond to a request for comment. A declined to comment.

Chantilly, Virginia-based Engility provides skilled personnel to U.S. departments of defence, homeland security and justice, among others. It has a market capitalization of $1.2 billion (£1 billion).

Engility is no stranger to dealmaking. It acquired privately held peer TASC for about $1.1 billion, including debt, in 2014. At the time, TASC was controlled by firms and General Atlantic LLC, who took Engility shares as well as seats on Engility's board as a part of the deal. KKR and General Atlantic now own close to half of Engility.

In April, Corp bought Inc for $9.7 billion to expand its government services business, after withdrew its offer for following a bidding war.

Beyond General Dynamic's purchase of CSRA, many companies in the government services sector have struck deals this year, including DXC Technology Co, which combined its U.S. public-sector business with Holding Corp and to create an independent, publicly traded company serving clients.

(Reporting by in Washington, D.C.; editing by Diane Craft)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, July 12 2018. 06:55 IST