ASRC Federal to acquire logistics and supply chain management unit of SAIC
ASRC Federal Holding Company has agreed to acquire the logistics and supply chain management arm of Science Applications International Corp. (SAIC) in an all-cash transaction valued at $350 million.
SAIC is a government military contractor, while ASRC Federal is a subsidiary of Arctic Slope Regional Corporation.
The acquisition complements ASRC Federal’s strategy to establish itself as a leading provider of secure, technology-enabled supply chain management and logistics solutions for the Defense Logistics Agency.
SAIC’s logistics and supply chain solutions are used by the Defense Logistics Agency to manage multiple supply chains for the agency’s clients.
Jennifer Felix — ASRC Federal President and CEO said: “This acquisition provides another channel for growth by further diversifying our robust set of capabilities.
“I am excited to welcome this mission-focused team who has earned a best-in-class reputation for delivering innovative solutions to their customers.
“Their work directly impacts the readiness of America’s warfighters, and they will bring tremendous capability to both new and existing ASRC Federal customers.”
ASRC Federal will add around 240 employees upon the close of the acquisition.
Nazzic Keene — SAIC CEO said: “Today’s announcement represents a milestone in SAIC’s priority to shape our portfolio and advance our strategy.
“The agreement allows for seamless transition and continued support for the logistics and supply chain management business and their important customer missions, while enabling SAIC to concentrate resources in our Growth & Technology Accelerant areas of focus.
“These areas include Secure Cloud, Enterprise IT and Systems Integration & Delivery which now account for more than 30% of SAIC revenue.”
Gibson, Dunn & Crutcher acted as legal counsel to ASRC Federal while Jefferies LLC served as the exclusive financial advisor and King & Spalding acted as legal counsel to SAIC.
The acquisition, which is subject to customary closing conditions, is expected to close in Spring 2023.
The Defense Logistics Agency offers services to Department of Defense agencies, including the US Army, US Navy, and US Air Force.