KBR to Expand Government Services, Agrees to Acquire Wyle

KBR Inc. announced that it has agreed to acquire Wyle Inc., a provider of specialized engineering, professional, scientific and technical services to the US government.  With over 3,800 employees, Wyle has domain expertise in systems and sustainment engineering, program and acquisition management, life science research, space medical operations, IT and testing and evaluation of aircraft, systems, and networks.  The business generated 2015 revenue and adjusted EBITDA of $836 million and $67 million respectively, and currently has approximately $440 million of funded backlog and $1.1 billion of unfunded backlog.
 
The purchase price is $570 million after adjusting for approximately $30 million of tax benefits, resulting in enterprise value multiples of 0.7x (2015 revenue) and 8.5x (2015 EBITDA).  The deal is expected  to close in the third quarter of 2016.