SAIC to raise $400M to finance Unisys Federal acquisition
The company will launch an offering of senior notes due in 2028.
Reston-based federal contractor Science Applications International Corp. (SAIC) will raise $400 million to finance its $1.2 billion acquisition of Reston-based Unisys Federal, the company announced Wednesday.
SAIC will launch an offering of senior notes due in 2028 and will use the proceeds, cash on its balance sheet, borrowings under its credit facility and proceeds from the sale of receivables to pay for the Unisys Federal acquistion.
Both companies are publicly traded federal contractors specializing in IT services. Announced Feb. 6, the transaction was approved by SAIC’s board of directors and is expected to close by May 1.
Unisys Federal is an operating unit of Blue Bell, Pennsylvania-based Unisys. The company provides infrastructure modernization, cloud migration and other IT services to the federal government. SAIC provides similar services such as cloud services, software and advanced analytics to the federal government.
SAIC serves defense, space, civilian and intelligence clients and employs more than 23,000 people.