Neuberger Berman Exits ENTRUST Stake in $2.4B Sale to Leidos
Event summary
- Neuberger Berman Capital Solutions exits minority stake in ENTRUST Solutions Group via $2.4B sale to Leidos.
- Neuberger initially acquired the stake in August 2023 alongside Kohlberg & Company.
- ENTRUST operates as a consulting and engineering services platform with 3,100+ professionals across 40+ locations.
- Transaction expected to close in Q2 2026, subject to regulatory approvals.
The big picture
The $2.4B sale of ENTRUST to Leidos underscores the growing consolidation in the utility and infrastructure services sector. Neuberger Berman's exit highlights the private equity firm's strategy of investing in niche consulting and engineering platforms. The deal also reflects Leidos' expansion into critical power infrastructure, a sector poised for growth amid aging utility systems and increasing demand for modernization.
What we're watching
- Integration Challenges
- How Leidos will integrate ENTRUST's operations and workforce into its existing infrastructure.
- Regulatory Approval
- The pace at which regulatory approvals are secured and potential hurdles in the closing process.
- Strategic Fit
- Whether the acquisition aligns with Leidos' long-term strategy in the utility and infrastructure sectors.
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