Leidos Advances Digital Modernization Capabilities With New Acquisition

Leidos spent most of 2020 securing new contracts, and now it has closed out the year with an acquisition. Over the past few years, the Fortune 500 information technology, engineering, and science solutions and services leader has been awarded a variety of contracts, including those with the FAA, U.S. Navy, and the Department of Defense. The company reported Q3 earnings that showed $3.24 billion in revenue, and year-over-year growth of 14.4%.

Leidos was recently awarded a new $64 million contract by the Federal Aviation Administration (FAA) to modernize their safety analysis tools and capabilities through the development of the Operational Analysis and Reporting System (OARS). The company is also fighting to hang on to a $7.7 billion contract it won in February to provide services for the Navy’s NGEN program, as well as a $147 million Housing and Urban Development IT modernization contract.

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Now Leidos has announced it entered into a definitive agreement to acquire 1901 Group. Founded in 2009, 1901 Group delivers leading cloud, cybersecurity, and enterprise-scale digital modernization services and capabilities to boost performance and slash costs. The company’s clients have included Departments of Justice, Agriculture, Education, and Health and Human Services, as well as the Small Business Administration, the U.S. Army, the U.S. Access Board, and the Centers for Medicare and Medicaid Services. It also has a spot on the General Services Administration’s Alliant Small Business and IT Schedule 70 contract vehicles.

The acquisition will bring those services to Leidos’ defense business segment, advancing its position in the digital modernization market and allowing it to better address the accelerating cloud and IT services markets. Leidos will also leverage 1901's proven IT, cloud factories, and fully integrated service delivery platforms.

"1901 Group will provide substantial new capabilities to enhance the value we bring to existing defense customers and position Leidos to meet the growing demand for cloud-based solutions in the defense market," said Leidos Defense Group President Gerry Fasano. "The Leidos Defense Group will work to ensure these new capabilities are readily accessible to enhance our offerings and pursuits across the company."

The acquisition is expected to close in the first quarter of 2021.