General Atlantic, KKR acquire Northrop Grumman’s advisory services unit

The unit is expected to fetch $1.65bn and is a positive sign for the health of leveraged buy-outs following last week’s $5.2bn LBO of IMS Health by TPG and the Canada Pension Plan Investment Board.

Northrop will receive $1.1bn in cash, which it will use to fund a stock repurchase.

David Langstaff, special adviser to General Atlantic and industry veteran, said, "With its core systems engineering heritage and its technical and analytical capabilities, TASC is at the forefront of protecting the nation from today's most serious security risks. As a newly independent company, TASC is poised to build on its 43 years of success and has a bright future."

Adam Clammer, member of KKR, added, "TASC is embodied by the many highly skilled and credentialed employees who have played a critical role, often unbeknownst to the public, in helping ensure the security of the US by offering high end, mission critical engineering advisory services to key government agencies.”

Founded in 1966, TASC today generates approximately $1.6bn in revenue and has nearly 5,000 employees serving a range of intelligence, defence, and civil agencies.

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