Salem Radio Network News Tuesday, July 5, 2022

Business

U.S. defense contractor ManTech accepts Carlyle’s $3.9 billion buyout deal

(Reuters) -ManTech International Corp on Monday accepted a $3.93 billion all-cash buyout deal from private equity firm Carlyle Group Inc, sending the U.S. defense contractor’s shares up 11%.

Carlyle said it had offered $96 per share, representing a 17% premium to ManTech’s closing on Friday. The enterprise value of the deal stood at $4.2 billion.

The deal comes at a time the outlook for mergers and acquisitions in the defense sector has been uncertain after arms maker Lockheed Martin Corp in February terminated its $4.4 billion proposal to rocket engine maker Aerojet Rocketdyne Holdings Inc amid opposition from U.S. antitrust enforcers.

The Biden administration has also released a report detailing recommendations to boost competition in its defense industrial base, saying rapid consolidation has created a national security risk.

Reuters in February exclusively reported that ManTech’s co-founder, George Pederson, was exploring options for his controlling stake that included a sale of the company.

Fairfax, Virginia-based ManTech performs defense and non-defense contracting services for the intelligence community, the Pentagon and other government agencies.

(Reporting by Tiyashi Datta, Aishwarya Nair and Akash Sriram in Bengaluru; Editing by Shinjini Ganguli)

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