KBR to Acquire LinQuest Corporation, Boosting National Security Capabilities

Insider Brief:

• KBR has announced a definitive agreement to acquire LinQuest Corporation to enhance its high-end technology and mission capabilities across the air, space and digital sectors.
• The transaction, valued at $737 million, is expected to be accretive to adjusted EPS, excluding amortization of purchased intangible assets and non-recurring transaction costs.
• KBR’s Board of Directors unanimously approved the transaction, which awaits regulatory approvals and is expected to close in Q3 or Q4 of this year.

KBR has announced a definitive agreement to acquire LinQuest Corporation. LinQuest specializes in engineering, data analytics, and digital integration for national security missions, particularly for the U.S. Space Force and Air Force. They excel in developing advanced technology solutions for space, air dominance, and connected battlespace missions, including AI and machine learning capabilities.

This acquisition aligns with KBR’s strategy to enhance its high-end technology and mission capabilities. The synergy between KBR and LinQuest is expected to drive new revenue growth. Over 74% of LinQuest’s 1,500+ employees hold security clearances, strengthening KBR’s support for strategic U.S. government clients in the defense and national security sectors.

Stuart Bradie, KBR’s President and CEO, highlighted LinQuest’s innovation in national security and technology solutions, noting that “[LinQuest’s] talented people deliver high-end, technically and digitally differentiated services that are complementary to KBR.” He went on to say, “LinQuest is a terrific company, and the revenue synergy opportunities are exciting. Our values are strongly aligned, and we are delighted to welcome this talented team to the KBR family.”

The transaction, valued at $737 million, is expected to be accretive to adjusted EPS, excluding amortization of purchased intangible assets and non-recurring transaction costs. KBR’s Board of Directors unanimously approved the transaction, which awaits regulatory approvals and is expected to close in Q3 or Q4 of this year.

Arena Strategic Advisors conducted financial due diligence, while Gibson, Dunn & Crutcher LLP served as KBR’s legal advisor. Baird was LinQuest’s exclusive financial advisor, with Kirkland & Ellis LLP acting as its legal advisor.

Image credit: KBR