Transaction expands company's capabilities in fast-growing healthcare IT market.
FALLS CHURCH, Va., Sept. 30, 2011 /PRNewswire/ -- General Dynamics (NYSE: GD) today completed its acquisition of Vangent Holding Corp., the parent company of Vangent, Inc., a leading provider of healthcare information technology and business systems to federal agencies. The cash transaction, valued at approximately $960 million, was announced on August 16 and is expected to be accretive to General Dynamics' earnings in 2012. Vangent was majority-owned by The Veritas Capital Fund III, L.P.
Vangent now becomes part of General Dynamics Information Technology, headquartered in Fairfax, Va. Vangent's core offerings include health informatics and information exchange, electronic health records and data analytics, as well as state-of-the-art business-process outsourcing solutions and systems. It supports customers in the U.S. Departments of Health and Human Services, Commerce, Education, Justice Labor, State, Veterans Affairs and Military Health Systems.
Jay L. Johnson, chairman and chief executive officer of General Dynamics, said, "Together with General Dynamics Information Technology's 30 years of experience in the healthcare IT market, this acquisition creates a Tier 1-level business that can meet the large-scale requirements of customers in markets that are receiving high priority in current funding and entitlement-reform initiatives."
In the healthcare arena, General Dynamics Information Technology is a market-leading provider of systems that detect and prevent fraud, waste and abuse in healthcare claims, as well as services that support the U.S. military health system ranging from advancements in primary patient care, virtualization, electronic health records and medical research to medical logistics. Major healthcare customers include Health and Human Services' Centers for Medicare and Medicaid Services, Food and Drug Administration and Centers for Disease Control and Prevention; the U.S. Department of Veterans Affairs; the U.S. Air Force Medical Support Agency; the U.S. Navy Bureau of Medicine; the U.S. Army Medical Department; the Department of Defense Military Health System; and commercial health payers.
General Dynamics Information Technology also provides information technology, systems engineering, professional services and simulation and training services to customers in the defense, intelligence, homeland security, healthcare, federal civilian, state and local government and commercial sectors. With the addition of Vangent, General Dynamics Information Technology now employs approximately 24,000 workers worldwide.
More information about General Dynamics Information Technology is available online at www.gdit.com.
More information about General Dynamics is available at www.generaldynamics.com.
Certain statements made in this press release, including any statements as to future results of operations and financial projections, may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on management's expectations, estimates, projections and assumptions. These statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict. Therefore, actual future results and trends may differ materially from what is forecast in forward-looking statements due to a variety of factors. Additional information regarding these factors is contained in the company's filings with the Securities and Exchange Commission, including, without limitation, its Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q.
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SOURCE General Dynamics