This post was originally published on this site
Investing.com — Government services contractor Amentum Holdings plans to acquire PAE Inc (NASDAQ:PAE) in a deal worth $1.9 billion, the two companies announced Monday.
PAE stock rose over 67%.
The acquisition, once complete, will produce one of the largest providers of critical services to U.S. federal and allied governments with combined revenue of over $9 billion in the last year.
“The acquisition of PAE complements Amentum’s growth into intelligence and technology services, deepens its relationship with key agencies such as the Department of State, NASA and the Intelligence Community, and meaningfully adds to Amentum’s scale, depth of client relationships and breadth of capabilities,” said Amentum CEO John Vollmer.
The Interim President and CEO of PAE, Charles Peiffer, said: “This strategic combination of two market-leading companies will benefit our customers and create increased opportunities for our employees while maximizing shareholder value.”
The transaction is expected to close by the end of Q1 2022.
In late September, Bank of America (NYSE:BAC) analyst Mariana Perez Mora initiated coverage of PAE with a Buy rating and $8 price target, saying the pullback in its stock price was “excessive.”
