Professional services company Leidos Holdings Inc. said Jan. 27 that it would acquire utility engineering services firm ENTRUST Solutions Group from private equity firm Kohlberg & Co. for $2.4 billion to increase its energy infrastructure market capacity. The deal, financed with cash and new debt, will close by the end of June, said Kohlberg, who has owned the company since buying it in 2019 for an undisclosed amount.
The Warrenville, Ill-based company is ranked No. 60 on ENR’s Top 500 Design Firms, with $488.6 million in design revenue by 2024, 98% in the energy sector. It specializes in services related to natural gas, pipeline integrity, automation, electrical design, fiber/broadband and environmental services, among other areas, the firm said. ENTRUST Solutions has more than 3,100 professionals in 40 offices across North America, he said.
Leidos, based in Reston, Va., ranked No. 21 on the Top 500, reported 2024 revenue of $1.22 billion, up 36%, with the company ranked No. 8 on the Top 50 Power Engineers list and Leidos ranked No. 11 in that same group.
The purchase would double the size of Leidos’ energy market and “is a bold step forward in support [its] growth strategy,” said Tom Bell. The company said U.S. utilities will invest $1 trillion over the next decade to strengthen and secure the U.S. grid. Leidos also ranks fourth among power design firms in transmission and distribution services revenue. Leidos was spun off from Science Applications International Corp. in 2013, focusing on national security, health, engineering and digital services modernization.
The combination will expand energy engineering capabilities to create an end-to-end infrastructure platform, said ENTRUST Solutions CEO Adam Biggam, in the role from 2021 and joining the company under its former name in 2005. “Our combined more than 5,500 energy professionals will have the resources, technology and reach to address the most complex challenges facing markets today of public and electrical services”. Biggam will remain with the combined company for two years, a published report said, but his new title was not disclosed. The companies also did not disclose details of their integration and how or if the name will be changed to ENTRUST Solutions.
In a Jan. 26 presentation to investors about the deal, executives said ENTRUST Solutions’ revenue was estimated at $650 million this year, with the transaction providing a “national footprint” with “expanded” engineering and program management capabilities “while avoiding construction exposure.”
The company, formerly known as EN Engineering, changed its name to its current name in 2022 to expand its services beyond engineering. Current utility customers include Duke Energy, Southern Co., Florida Power & Light, American Electric Power, Southwest Gas and Washington Gas. Leidos says it works with 75 investor-owned utilities. “more than 100 municipalities and cooperatives and “a growing number of private developers,” according to its website.
Leidos said it will hold an investor call to report its full-year and fourth-quarter 2025 financial results on Feb. 17.
