Los Angeles-based Platinum Equity Holdings (PEH) announced that it has agreed to acquire PAE from fellow PE firm Lindsay Goldberg LLC, which bought the company from Lockheed Martin in 2011 for $350M. Under Lindsay Goldberg's ownership, PAE has grown to approximately $1.4B in revenues, partially from four acquisitions including Defense Support Services LLC, the Applied Technology Division of CSC, the Global Security and Solutions business unit of USIS LLC, and most recently A-T Solutions Inc. which PAE acquired in June of 2015. Reuters had originally reported that Apollo Global Management was the leading bidder for PAE, ahead of PEH and American Securities.
PAE has over 15,000 employees worldwide and provides services including aviation, capacity building and stabilization, critical infrastructure, expeditionary logistics, identity and information management solutions, integrated security solutions, test and training ranges, training solutions, and hardware and software products that predict and prevent asymmetric threats. PAE's customers include DOD (Air Force, Army, Marines, Navy), DHS, DOE, DOJ, DOS, NASA, and UK Ministry of Defence.
Deal terms were not disclosed, however, earlier reports estimated the valuation of the business at close to $900M including debt. The transaction is expected to close by the end of February 2016.
We provide you with the latest news on acquisitions in the Defense and Government markets. Make sure to subscribe to our weekly deal updates: