General Dynamics makes $960M deal for Vangent
- By Nick Wakeman
- Aug 16, 2011
General Dynamics Corp. has signed a deal to buy Vangent Inc. for $960 million, a transaction that builds on GD’s health care IT business.
Vangent, owned by the private equity group Veritas Capital, will become part of General Dynamics' IT business. The deal is expected to close by Oct. 1, following regulatory approvals.
“Vangent is a well-regarded, fast-growing company that will add significant depth and breadth to General Dynamics’ health care IT organization,” said Jay Johnson, chairman and CEO of General Dynamics, in a statement. “Increasingly agencies will rely on efficient, modern business and information systems as key enablers of their citizen-service missions, and Vangent is a leader in meeting those information technology and business system requirements.”
Vangent has 7,500 employees, and its customers include the Health and Human Services, Education, Labor, State, and Defense departments. The company’s core offerings include health informatics and information exchange, electronic health records and data analytics, as well as business-process outsourcing solutions.
The Vangent deal isn’t the first big acquisition GD has made in the government IT market. Past acquisitions include Anteon International, Veridian Corp. and GTE Corp.
Both companies are ranked in the 2011 Washington Technology Top 100
list of government contractors. GD ranks No. 5 and Vangent ranks No. 48.
Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.