Science Applications International Corp.
announced Monday a deal to buy Engility Holdings Inc.
in a stock deal valued at $2.5 billion, including the repayment of $900 million in debt. Engility’s stock was halted for news, and Science Applications shares were little changed in premarket trade. Under terms of the deal, 0.45 shares of SAIC common stock will be exchanged for each Engility share outstanding, which based on Friday’s closing prices values Engility shares at $40.44 each, an 11.6% premium. Engility’s stock hasn’t traded at that level during regular session hours since February 2015. The deal, which is expected to close by the end of the fiscal fourth-quarter ending Feb. 1, 2019, creates the second-largest independent technology integrator in government services, the companies said. Engility’s stock has run up 13.3% over the past three months, while SAIC shares have edged up 1.9% and the S&P 500
has gained 3.3%.
View more information: https://www.marketwatch.com/story/saic-to-buy-engility-in-a-stock-deal-valued-at-25-billion-including-debt-2018-09-10