Engility

Engility Holdings, Inc.
Public
Traded as NYSE: EGL
S&P 600 Component
Founded July 2011 (2011-07)
Headquarters Chantilly, Virginia, U.S.
Area served
 United States
Key people
 Lynn Dugle (CEO)
Revenue Decrease $1.93 billion (2017)
Decrease-$35.2 million (2017)
Number of employees
 11,000 (January 2015)
Subsidiaries TASC, Inc.
Website www.engility.com

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]

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. 1 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. 1 2 3 Censer, Marjorie (2012-07-17). "Engility spins off from L-3 Communications". Washington Post. ISSN 0190-8286. Retrieved 2018-03-29.
  4. 1 2 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. 1 2 Jayakumar, Amrita (2014-10-28). "Engility to acquire TASC for $1.1 billion". Washington Post. ISSN 0190-8286. Retrieved 2018-03-29.
  13. 1 2 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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