Cybersecurity is a priority across the globe, with a recent survey predicting that online attacks will cost the world $6 trillion annually by 2021. And it’s not just the financial repercussions; these attacks can have a real impact on a nation’s critical infrastructure. As a result, the U.S. government has been working to set up protections by establishing the Cybersecurity and Infrastructure Security Agency (CISA) in 2018.
Private companies are also providing critical products and services to governments and government-influenced markets. Veritas Capital invests in those companies, completing more than 100 acquisitions during its two decades of existence.
Its most recent purchase has been the federal IT and mission support services business of Northrop Grumman for $3.4 billion in cash. The business provides a wide range of advanced technology solutions including cybersecurity, data analytics, cloud services, mission-critical application development, and advanced engineering to defense, intelligence, space, civil, and health customers. It expects to generate $2.3 billion in revenue in 2020.
“The federal IT and mission support services business of Northrop Grumman has an exceptional track record of delivering innovative technology that addresses the critical needs of its government agency customers,” said Ramzi Musallam, Chief Executive Officer and Managing Partner of Veritas. “We believe that with our focus, vision and resources, we can create a scaled, technology-enabled services platform that is well-positioned for long-term growth and able to deliver unparalleled support to a broad range of critical government missions.”
The deal is expected to close in the first half of 2021. Once it’s complete, Veritas plans to combine the business with its portfolio company Peraton to create a government mission capability integrator and IT provider focused on providing high-end technology-enabled services. Peraton Chairman, President & Chief Executive Officer Stu Shea will lead the combined business.
This news follows Veritas’ recent announcement that Gainwell Technologies is the new name of the U.S. State & Local Health and Human Services business it acquired from DXC Technology in October. And that same month, Veritas revealed the successful final close of its Veritas Capital Credit Opportunities Fund with $400 million of aggregate committed capital.