📋 Tender Overview
- Creates an upmarket leader in Civil Military Intelligence and Commercial Space Solutions.- Strengthens KBRs Military Space and Intel Space Businesses with Best-in-Class Portfolio Focused on high-priority Defense Modernization MilSpace and Intelligence Budgets.- Further Expands and Differentiates KBRs Capabilities in High-End Engineering Technology Development and Mission Support Services for Defense and Intelligence Customers.- Advances KBRs Strategic Transformation and Attractively Accretive.KBR Inc. announced it has entered into a definitive agreement with Arlington Capital Partners Arlington Capital a Washington DC-based private equity firm under which KBR will acquire Centauri LLC Centauri a leading independent provider of high-end space directed energy and other advanced technology solutions for approximately 800 million net of tax benefits in cash.Centauri is a technology-driven company that provides high-end engineering and development solutions for critical well-funded national security missions associated with space intelligence cyber and emerging technologies such as directed energy and missile defense. Centauri has achieved significant growth over the last four years becoming a leading pure-play space and intelligence solutions provider and benefitting from its highly cleared and technical workforce space domain awareness and a customer-focused footprint of classified operations. Centauri also has a substantial and growing pipeline of opportunities in Department of Defense DoD and intelligence community programs that benefit from bipartisan support. Headquartered in Chantilly Virginia with 22 offices across the United States Centauri has more than 1750 employees a majority of which have special access clearances and half of whom have advanced degrees.The Centauri acquisition will be transformative for KBR. With Centauri KBR significantly expands its military space and intelligence businesses and builds on its already strong cybersecurity and missile defense solutions. The companies possess complementary and established customer relationships supported by recurring contracts serving some of the U.S. governments most important challenging and complex missions. KBR expects to benefit from a more balanced and more differentiated portfolio that is resilient across business cycles poised for continued growth in attractive high-priority domains. The transaction builds on KBRs previous strategic acquisitions and successful integrations of Wyle Honeywell Technology Solutions and Stinger Ghaffarian Technologies and creates a combined platform with extensive expertise in civil military intelligence and commercial space solutions.KBR has undergone a deliberate strategic transformation to be a provider of innovative higher-end digitally-enabled solutions and technologies in attractive stable domains said Stuart Bradie KBR President and Chief Executive Officer. The acquisition of Centauri firmly aligns with our strategy of increasing KBRs highly technical mission-focused synergistic capabilities and enduring customer relationships. We are excited to welcome and work closely with the Centauri team as we continually drive growth and value-creation for our shareholders and other stakeholders.David Wodlinger a Partner at Arlington Capital said Centauri was purpose-built to solve the most complicated space and directed energy challenges faced by our country a strategy that will only be enhanced by KBRs scale strong management team and shared focus on quality and culture.By combining with KBR Centauri will have greater opportunities to grow as part of a larger and more diversified company said Dave Dzaran Chief Executive Officer of Centauri. Centauri and KBR share strong employee-focused mission-first cultures and complementary platforms making this an ideal combination. As part of KBR our innovation and initiative will enhance our combined companys ability to develop systems and provide solutions in space intelligence and cyber. KBRs global foundation of safety and sustainability will help us drive continuous growth and keep our nation safe.Strategic and Financial Benefits of the AcquisitionCreates a Leader in Civil Military Intelligence and Commercial Space Solutions Centauri is at the forefront of military and intelligence space systems engineering and development bringing increased scale and complementary expertise to KBRs existing capabilities in space system design development test launch and operations and creating a leader in end-to-end space solutions. This is entirely consistent with the United States Space Force strategy to converge capabilities across the military civil and commercial domains to achieve space superiority goals consistent with the U.S. National Security Strategy.Establishes a Highly Complementary Technology-Focused Platform with Resilient Cash Generation With a 2021 revenue outlook of 700 million EBITDA margins of approximately 10 more than 1 billion in contract backlog and options and strong cash flow generation Centauris high-growth and low-capital intensity platform aligns well with KBRs cash generative business model and expands KBR into new adjacent vectors with minimal overlap with KBRs heritage business.Compelling Long-Term Growth Opportunities Supported by Strong Revenue Synergies Centauri is expected to be immediately accretive to earnings after transaction costs. KBR is well-positioned to extend Centauris track record of double-digit growth benefitting from significant revenue synergies in attractive and growing federal sectors aligned with DoD and intelligence priorities that benefit from bipartisan support.
