Engility

Engility Holdings, Inc. is an American publicly traded company that provides engineering and logistics services to several United States military and civilian agencies. The company based in Chantilly, Virginia was formed in 2012 as a spin-off of the services division of L-3 Communications Holdings. As of 2017, Engility reports an annual revenue of about $2 billion. On September 10, 2018, Science Applications International Corporation (SAIC) announced it was buying Engility for about $2.5 billion.[1]

Engility Holdings, Inc.
Subsidiary
Traded asNYSE: EGL
S&P 600 Component
FoundedJuly 2011 (2011-07)
Headquarters,
U.S.
Area served
United States
Key people
Lynn Dugle (CEO)
Revenue $1.93 billion (2017)
-$35.2 million (2017)
Number of employees
11,000 (January 2015)
ParentScience Applications International Corporation
SubsidiariesTASC, Inc.
Websitewww.engility.com

History

Engility, previously known as L-3 Services, Inc., became an independent publicly traded corporation in July 2012 as part of a spin-off transaction by L-3 Communications Corporation. At the time of the spin-off, the new company was estimated to have an annual revenue of $1.6 to $2 billion and employed about 9,000 to 10,000 people.[2][3] The L-3 Services Group EVP, Tony Smeraglinolo, was announced as the CEO of the new defense contractor firm.[2] Following the spin-off from its New York-based parent company, Engility established its headquarters in Chantilly, Virginia, in the Washington metropolitan area. The new company acquired much of L-3's services business, while its former parent company retained most of the products business.[3]

In January 2013, the Associated Press reported that Engility had paid a $5.28 million settlement to 71 former inmates of Abu Ghraib prison.[4] The company had inherited lawsuits from L-3 Services Group which in turn had inherited them when L-3 Communications acquired Titan Corporation.[5][6] The contract with the U.S. Military called for Titan to provide translators to support the personnel in the Iraqi prison.[4]

In December 2013, Engility agreed to acquire the Andover, Massachusetts,-based Dynamics Research Corporation.[7] Valued at $120.9 million,[8] the deal was completed in January 2014, beginning a full integration of the two companies.[9]

In October 2014, Engility announced that it planned to acquire another Chantilly, Virginia-based defense contractor, TASC, Inc.[10] Kohlberg Kravis Roberts and General Atlantic, the private equity firms which previously owned TASC, gained a 51% stake in Engility Holdings as part of the merger.[11] The all-stock acquisition deal was valued at $1.1 billion.[12] Engility completed the acquisition of its rival in February 2018 with the final price for the deal reported as $1.3 billion.[13] After the merger, the company announced that TASC's chief executive, John Hynes, had joined Engility as the chief operating officer. The TASC brand remained in operation as a subsidiary of Engility.[12][14]

Operations

Since the spin-off from L-3, Engility has been based in Chantilly, Virginia, located in the Washington metropolitan area.[3] In March 2013, Engility implemented a significant reduction in its auxiliary workforce, cutting about 40 percent of its accounting, human resources, and payroll departments, reducing its total of 7,800 employees by 4%.[15] After the merger with TASC in early 2015, however, the company was estimated to employ about 11,000 people, of which 4,000 are located near the nation 's capital.[13]

As of March 2016, the Engility appointed a former Raytheon employee Lynn Dugle as chief executive.[16] In June 2017, the company eliminated the positions of president and COO previously held by former-TASC CEO John Hynes, who also left the company at the same time.[17] That same month, the company won a contract from the US Air Force to consult on review and evaluation of the space vehicles and missile equipment located at Los Angeles Air Force Base.[18] In November 2017, the US Navy granted Engility a modernization contract valued at $30 million.[19] In March 2018, Engility reported a revenue of $1.93 billion and net loss of $35.2 million in the previous year.[20]

References

  1. "SAIC to Acquire Engility Uniting Two Leading Technology Integrators | SAIC". investors.saic.com. Retrieved 2018-09-10.
  2. De la Merced, Michael J. (July 28, 2011). "L-3 to Spin Off a Government Services Unit". DealBook. The New York Times. Retrieved March 29, 2018.
  3. Censer, Marjorie (2012-07-17). "Engility spins off from L-3 Communications". Washington Post. ISSN 0190-8286. Retrieved 2018-03-29.
  4. Cushman, John H. Jr (2013). "Contractor Settles Case in Iraq Prison Abuse". The New York Times. ISSN 0362-4331. Retrieved 2018-03-29.
  5. Associated Press; Herschaft, Randy (January 8, 2013). "Defense contractor paid $5M to Iraqis over Abu Ghraib". USA Today. Retrieved 2018-03-29.
  6. Censer, Marjorie (2013-01-09). "Abu Ghraib scandal continuing to create repercussions for contractors". Washington Post. ISSN 0190-8286. Retrieved 2018-03-29.
  7. Censer, Marjorie (2013-12-23). "Consolidation looms as Engility picks up DRC". Washington Post. ISSN 0190-8286. Retrieved 2018-03-29.
  8. Mason, Everdeen (2013-12-23). "Engility Holdings to Acquire Dynamics Research for $120.9 Million". Wall Street Journal. ISSN 0099-9660. Retrieved 2018-03-29.
  9. Censer, Marjorie (2014-02-07). "After 18 months reshaping, Engility seeks growth in DRC acquisition". Washington Post. ISSN 0190-8286. Retrieved 2018-03-29.
  10. Ajmera, Ankit; Mehta, Tanvi (October 28, 2014). "U.S. government contractor Engility to buy TASC for about $1.1 billion". Reuters. Retrieved 2018-03-29.
  11. Cameron, Doug; Beckerman, Josh (October 28, 2014). "Engility, TASC to Merge in $1.1 Billion All-Stock Deal". Wall Street Journal. ISSN 0099-9660. Retrieved March 29, 2018.
  12. Jayakumar, Amrita (2014-10-28). "Engility to acquire TASC for $1.1 billion". Washington Post. ISSN 0190-8286. Retrieved 2018-03-29.
  13. Jayakumar, Amrita (2015-02-26). "Engility, TASC complete $1.3B merger". Washington Post. ISSN 0190-8286. Retrieved 2018-03-29.
  14. Jayakumar, Amrita (2015-03-01). "In tough times, going bigger is better, says federal services provider Engility". Washington Post. ISSN 0190-8286. Retrieved 2018-03-29.
  15. Censer, Marjorie (2013-03-24). "Engility reshaping for tighter times". Washington Post. ISSN 0190-8286. Retrieved 2018-03-29.
  16. Ajmera, Ankit (March 1, 2016). "Engility appoints Raytheon Co executive Lynn Dugle as CEO". Reuters. Retrieved 2018-03-29.
  17. Wakeman, Nick (June 26, 2017). "Engility eliminates COO, president position". Washington Technology. Retrieved 2018-03-29.
  18. Williams, Paige (2017-08-08). "Engility will provide consulting for US Air Force space programs". Defense News. Retrieved 2018-03-29.
  19. Richman, Jackson (2017-11-28). "Navy awards $30M modernization contract to Engility". Defense News. Retrieved 2018-03-29.
  20. Associated Press (March 1, 2018). "Engility Holdings reports 4Q loss". Yahoo Finance. Retrieved 2018-03-29.
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