KBR To Acquire LinQuest, Expanding Technical Capabilities Across Air, Space And Digital Domains
KBR (NYSE: KBR) has officially announced a definitive agreement to acquire LinQuest Corporation. This strategic acquisition is set to significantly enhance KBR’s digital integration capabilities for national security customers and expand its opportunities for revenue growth in meeting customer and market demands.
LinQuest Corporation, renowned for its engineering, data analytics, and digital integration expertise, has a strong legacy of solving complex technical challenges associated with national security missions. The company excels in developing and integrating advanced technology solutions tailored to the rigorous demands across space, air dominance, and connected battlespace missions, notably incorporating advanced AI and machine learning capabilities. LinQuest stands out as a leading supporter of the U.S. Space Force, U.S. Air Force, and other U.S. Department of Defense and intelligence agencies.
The acquisition of LinQuest represents a pivotal accelerator in KBR’s strategy to enhance its delivery of high-end technology, expertise, and mission capabilities. The combined strengths of KBR and LinQuest will generate synergies across their portfolio of solutions, driving new avenues for revenue growth. Notably, over 74% of LinQuest’s 1,500+ employees hold security clearances, bolstering KBR’s capacity to support strategic U.S. government clients in the rapidly evolving defense and national security sector.
"LinQuest is an innovator in national security, space, and technology solutions. Their talented team delivers high-end, technically and digitally differentiated services that are complementary to KBR," said Stuart Bradie, KBR President and Chief Executive Officer. "LinQuest is a terrific company, and the revenue synergy opportunities are exciting. Our values are strongly aligned, and we are delighted to welcome this talented team to the KBR family."
The transaction is expected to be accretive to adjusted EPS, excluding amortization from purchased intangible assets and non-recurring transaction costs. The purchase price for the acquisition is $737 million, inclusive of modest expected tax benefits, which translates to a 2025 fiscal year adjusted EBITDA multiple of just over 11x. KBR will finance the transaction using a combination of cash and existing debt capacity, with the transaction anticipated to close in the third or fourth quarter of this year, subject to regulatory approvals.
This acquisition has been unanimously approved by the KBR Board of Directors, underscoring the strategic importance and confidence in the synergy and growth potential this acquisition brings. Arena Strategic Advisors supported financial due diligence, and Gibson, Dunn & Crutcher LLP acted as the legal advisor to KBR for the transaction.
On the side of LinQuest, Baird served as the exclusive financial advisor, while Kirkland & Ellis LLP provided legal advisory services. LinQuest’s integration into KBR is poised to enhance the combined entity’s ability to deliver high-end, technically differentiated services, reinforcing KBR’s strong position in high-end, technically differentiated services across space, air dominance, and battlespace missions.
The acquisition aligns with KBR’s mission to leverage advanced technology and expertise to meet the evolving needs of national security and defense sectors. By integrating LinQuest’s capabilities, KBR aims to offer more comprehensive and innovative solutions to its clients, ensuring readiness and superiority in national defense operations.
Supplemental information regarding the transaction and its implications for KBR’s strategic direction and financial outlook is available at investors.kbr.com.
In conclusion, the acquisition of LinQuest Corporation marks a significant milestone for KBR, reinforcing its commitment to expanding digital integration capabilities and strengthening its position as a leader in providing advanced, technically differentiated services for national security. This strategic move not only enhances KBR’s service offerings but also opens new pathways for growth and innovation in the rapidly evolving defense and national security landscape.
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