Amentum Holdings LLC is set to acquire PAE Incorporated in a $1.9 billion all-cash transaction, creating a major player in the U.S. government services market.

Information on the Target

Amentum Holdings LLC and PAE Incorporated are two leading contractors in the government services sector. Amentum has announced a definitive agreement to acquire PAE, creating a formidable entity that will serve the U.S. federal and allied governments. This acquisition entails an all-cash transaction valued at approximately $1.9 billion, which includes the assumption of debt and related fees. The combined entity will generate over $9 billion in revenue and will enhance capabilities across numerous sectors, including synthetic training, sensor-based technologies, intelligence, cyber and IT solutions, space operations, and mission support.

The acquisition aims to integrate Amentum's extensive service offerings and client relationships with PAE's operational expertise. This strategic move will facilitate a more robust presence in the federal services market, positioning the new organization as one of the leaders in the defense and intelligence domains.

Industry Overview in the Target’s Specific Country

The government services industry in the United States is a rapidly evolving sector, driven by advancing technologies and increasing defense budgets. In recent years, the federal government has prioritized investments in intell