Huntington Ingalls Industries to acquire Alabama company for $380 million.
Newport News-based Huntington Ingalls Industries plans to acquire Camber Corp., a government services company based in Huntsville, Ala., for $380 million.
Founded in 1990, Camber has annual revenue of about $364 million. It provides mission-based and information technology solutions. The company has 1,700 employees.
HII is the parent company of Newport News Shipbuilding, Virginia’s largest industrial employer.
When the Camber acquisition closes, HII will reorganize its services businesses to establish a new segment, HII Technical Solutions.
Major Camber customers are the U.S. Navy and the U.S. Army. Other federal and civilian customers include the Administrative Office of the United States Courts and the U.S. Postal Service; and the intelligence community.
HII said Camber’s capabilities in growth areas, such as agile software and network engineering, modeling simulation and training, unmanned systems, systems engineering, and data analytics will broaden the company’s offerings and customer base.
“This acquisition is consistent with our Path to 2020 strategy to optimize and expand our services portfolio while continuing to invest in our shipbuilding business and returning substantially all free cash flow to shareholders,” Mike Petters, HII’s president and CEO, said in a statement.
The new service businesses segment, HII Technical Solutions, will include Camber and the following HII subsidiaries: AMSEC, Continental Maritime of San Diego, Newport News Industrial, SN3, Undersea Solutions Group and UniversalPegasus International.
The segment is expected to generate approximately $1 billion of combined revenue in fiscal year 2017. It will be led by Andy Green, who will serve as executive vice president of HII and president of the Technical Solutions segment.
Green currently serves as corporate vice president of corporate development, with responsibility for all business development activities related to marine technical services and shipbuilding.
The Camber acquisition has been approved by the HII board of directors and is expected to close in late 2016, subject to certain regulatory approvals and customary closing conditions.