Transaction will expand company's exposure in fast-growing healthcare IT market.
FALLS CHURCH, Va., Aug. 16, 2011 /PRNewswire/ -- General Dynamics (NYSE: GD) has entered a definitive agreement to acquire Vangent Holding Corp., the parent company of Vangent, Inc., a leading provider of healthcare information-technology and business systems to federal agencies, in a cash transaction valued at approximately $960 million. Vangent is majority-owned by The Veritas Capital Fund III, L.P. Vangent will become part of General Dynamics Information Technology, which has been providing healthcare information-technology (IT) systems and solutions to federal, commercial and military customers for nearly 30 years.
The proposed acquisition, which has been approved by the board of directors of General Dynamics and by the seller, would be accretive to General Dynamics' earnings in 2012. The transaction is subject to customary closing conditions (including normal regulatory approvals) and is expected to close by October 1.
"Vangent is a well-regarded, fast-growing company that will add significant depth and breadth to General Dynamics' healthcare IT organization, creating a Tier 1-level healthcare IT business unit with the scope and scale to compete in markets that are receiving high priority in current funding and entitlement-reform initiatives," said Jay L. Johnson, chairman and chief executive officer of General Dynamics. "Increasingly agencies will rely on efficient, modern business and information systems as key enablers of their citizen-service missions, and Vangent is a leader in meeting those information technology and business system requirements."
Vangent, Inc., based in Arlington, Va., primarily supports the U.S. Departments of Health and Human Services, Education, Labor, State and Defense. The company'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. Vangent has more than 7,500 employees.
General Dynamics Information Technology, headquartered in Fairfax, Va., provides information technology, systems engineering, professional services and simulation and training support to customers in the defense, intelligence, homeland security, health, federal civilian, state and local government and commercial sectors. With approximately 17,000 professionals worldwide, the company manages large-scale, mission-critical programs delivering IT services and enterprise solutions.
More information about Vangent, Inc., is available online at www.vangent.com.
For more information about General Dynamics Information Technology, please visit www.gdit.com.
More information about General Dynamics is available online 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