ManTech to acquire Kforce Government Solutions
HERNDON, Va. Officials at ManTech International Corp. signed a definitive agreement to acquire Kforce Government Solutions, Inc. (KGS), formerly a wholly-owned subsidiary of Kforce, Inc. for $115 million in cash.
KGS (with headquarters in Fairfax, Virginia) provides technology solutions, transformation management, data management and analytics in support of federal health and defense missions. In 2018, KGS generated approximately $98 million of revenue and has profitability comparable to ManTech.
The combination will increase ManTech’s footprint at the Department of Veterans Affairs (VA) and enable ManTech to deliver services through the VA’s Transformation Twenty-One Total Technology Next Generation (T4NG) program. The T4NG program is a 10-year indefinite delivery, indefinite quantity (IDIQ) contract awarded by the VA Technology Acquisition Center (TAC) to help the VA transform its information technology programs.
ManTech will fund the acquisition from cash on hand with additional funding from its existing line of credit. ManTech expects the acquisition to be slightly accretive to earnings per share in 2019. The acquisition is subject to various closing conditions and approvals, including approval under the Hart-Scott-Rodino Act, and is expected to be completed in March 2019.