Engility

Engility Holdings, Inc. was an American engineering, logistics, consulting, and technical-services contractor serving the United States Department of Defense, other military organizations, and civilian federal agencies. The company was created in July 2012 when L-3 Communications separated its services division, previously known as L-3 Services, into an independent publicly traded company. L-3 retained most of its products businesses while the new Engility inherited a substantial portfolio of government-services contracts and approximately 9,000 to 10,000 employees at formation. The company established its headquarters in Chantilly, Virginia, in the Washington metropolitan area. Its work centered on supporting government missions rather than selling consumer products: engineering and systems integration, logistics, training, acquisition support, mission operations, analytical services, and technical assistance for defense and civilian agencies. Engility's customer base included elements of the U.S. armed forces and federal departments that required specialized personnel and contractor-operated technical capabilities. Engility expanded through acquisitions. In 2013 it agreed to purchase Dynamics Research Corporation, an Andover, Massachusetts-based government contractor; the transaction, valued at approximately $120.9 million, closed in January 2014. In 2014 Engility announced plans to acquire TASC, another Chantilly-area defense and intelligence contractor backed by KKR and General Atlantic. The all-stock transaction ultimately closed in February 2015 according to the reference material, with the reported value later reaching about $1.3 billion. TASC's brand continued as a subsidiary, and TASC chief executive John Hynes became Engility's chief operating officer. The company also dealt with inherited legal exposure from earlier corporate transactions. In January 2013, Engility paid a $5.28 million settlement to 71 former Abu Ghraib detainees. The claims originated with L-3 Services and ultimately involved the acquisition of Titan Corporation, whose translators had supported U.S. military personnel at the Iraqi prison. The settlement related to liabilities inherited through that corporate lineage rather than to a newly established Engility operating program. Engility adjusted its organization after becoming independent. In March 2013 it reduced its auxiliary workforce, including accounting, human-resources, and payroll functions, in a restructuring that reduced overall employment by roughly 4 percent from a workforce of about 7,800. Following the TASC combination, employment was estimated at approximately 11,000. Lynn Dugle, formerly associated with Raytheon, became chief executive in March 2016. In June 2017 the company eliminated the president and chief operating officer positions held by John Hynes, who departed at the same time. By 2017 Engility reported annual revenue of approximately $2 billion. Its business included work for military and civilian agencies, including a 2017 U.S. Air Force engagement involving review and evaluation of space vehicles and missile equipment at Los Angeles Air Force Base, as well as a U.S. Navy modernization contract reported in November 2017 at approximately $30 million. In March 2018 the company reported about $1.93 billion in revenue and a $35.2 million net loss for the preceding year. On September 10, 2018, Science Applications International Corporation announced an agreement to acquire Engility for approximately $2.5 billion. The transaction ended Engility's independent corporate identity, and the Engility brand was retired after the acquisition. Engility is therefore best understood as a former public defense and government-services company whose capabilities and contracts were absorbed into SAIC rather than as an active standalone brand.

Engility originated within L-3 Communications' government-services operations. Before the separation, the business was known as L-3 Services and provided engineering, logistics, technical, and mission-support work to U.S. government customers. L-3 Communications separated the services division in July 2012, creating Engility Holdings as an independent publicly traded company. The new enterprise was based in Chantilly, Virginia, and began with an estimated 9,000 to 10,000 employees and projected annual revenue in the range of $1.6 billion to $2 billion. Tony Smeraglinolo, who had been an executive of L-3 Services, became the new company's chief executive. The spin-off gave Engility a business centered on services and contracts, while L-3 retained most of its product-oriented activities. Engility's work covered engineering, logistics, training, systems integration, acquisition support, analytics, and mission operations for military and civilian agencies. Because it inherited businesses and liabilities from L-3, the company also inherited legal matters associated with earlier acquisitions. One prominent case involved claims by former Abu Ghraib detainees. The claims related to translator services supplied under a Titan Corporation contract and passed through the corporate chain after L-3 acquired Titan. Engility reached a $5.28 million settlement with 71 former detainees in January 2013. Engility pursued growth through acquisitions soon after its launch. It agreed in December 2013 to acquire Dynamics Research Corporation, a Massachusetts-based federal contractor, for approximately $120.9 million. The transaction closed in January 2014 and broadened Engility's technical and government-services capabilities. The company then announced a much larger combination with TASC, a Chantilly-based contractor owned by KKR and General Atlantic. The transaction was structured as an all-stock deal. The private-equity firms received a 51 percent stake in Engility Holdings, and the transaction was ultimately reported at approximately $1.3 billion. The combination was completed in 2015, while the TASC name remained in use as a subsidiary brand. John Hynes, TASC's former chief executive, became Engility's chief operating officer. The company adjusted its internal structure as it integrated its businesses. In March 2013 it reduced its auxiliary workforce, including accounting, human resources, and payroll functions. The cuts reduced the company's total workforce by approximately 4 percent from a reported base of about 7,800 employees. The TASC combination subsequently expanded the overall organization to an estimated 11,000 employees, including a substantial concentration in the Washington, D.C., metropolitan area. In March 2016 Engility appointed Lynn Dugle as chief executive officer. Dugle had previously worked at Raytheon. In June 2017 the company removed the president and chief operating officer roles held by John Hynes, who departed. During the same period Engility continued to win federal work. Its assignments included U.S. Air Force support involving evaluation of space vehicles and missile equipment at Los Angeles Air Force Base and a U.S. Navy modernization contract reported at approximately $30 million. Engility remained a sizable federal contractor but experienced uneven financial performance. Reference material reports approximately $2 billion in revenue for 2017 and approximately $1.93 billion in revenue with a $35.2 million net loss for the preceding year. On September 10, 2018, SAIC announced that it would acquire Engility for approximately $2.5 billion. The transaction ended Engility's existence as an independent public company, and the Engility brand was retired. Its capabilities became part of SAIC's broader government-technology and defense-services business.

• 2018

  SAIC announces acquisition

  [1]Engilityen.wikipedia.org

  SAIC announced an approximately $2.5 billion acquisition of Engility, after which the Engility brand was retired.

• 2017

  Federal defense contracts expand mission portfolio

  [1]Engilityen.wikipedia.org

  Engility received U.S. Air Force and U.S. Navy work involving space and missile evaluation and modernization.

• 2016

  Lynn Dugle becomes CEO

  [1]Engilityen.wikipedia.org

  Former Raytheon executive Lynn Dugle was appointed chief executive officer.

• 2015

  TASC combination completed

  [1]Engilityen.wikipedia.org

  Engility completed its acquisition of TASC and retained TASC as a subsidiary brand.

• 2014

  Dynamics Research Corporation acquisition announced

  [1]Engilityen.wikipedia.org

  Engility agreed to acquire Dynamics Research Corporation for approximately $120.9 million.

• 2013

  Abu Ghraib litigation settlement

  [1]Engilityen.wikipedia.org

  Engility paid a $5.28 million settlement to 71 former detainees in litigation inherited through predecessor companies.

• 2012

  Engility is spun off from L-3 Communications

  [1]Engilityen.wikipedia.org

  L-3 Communications separated its services division, formerly L-3 Services, into the independent publicly traded company Engility Holdings.

A large U.S. government-services contractor focused on engineering, logistics, mission support, consulting, and systems integration for defense and civilian federal agencies.

• Government contracting services · 2012

  Defense engineering and systems integration

  Engility provided engineering, technical integration, systems analysis, and program support for U.S. defense customers. Its work was oriented toward government missions and complex military systems rather than commercial product sales.

• Defense and federal services · 2012

  Logistics and mission support

  The company supplied logistics, operational assistance, training, and other mission-support capabilities to U.S. armed forces and federal agencies. These services included contractor personnel and technical resources embedded in government programs.

• Aerospace and defense services · 2017

  Space and missile systems evaluation

  Engility supported evaluation and review of space vehicles and missile equipment for the U.S. Air Force, including work associated with Los Angeles Air Force Base.

• Professional and technical services · 2012

  Federal consulting and analytics

  Engility delivered consulting, analytical, acquisition, modernization, and technical-assistance services to military and civilian federal agencies.

• 2013

  Abu Ghraib detainee litigation

  Engility settled claims brought by 71 former Abu Ghraib detainees for $5.28 million. The matter was inherited from L-3 Services and was connected to translator services supplied by Titan Corporation under a U.S. military contract.

  Source

Read more

• 2018

  Sell Engility to SAICM&A

  Background

  Engility agreed to combine with Science Applications International Corporation.

  Action taken

  SAIC announced an acquisition valued at approximately $2.5 billion.

  Aftermath

  Engility ceased to operate as an independent brand and became part of SAIC.

  Acquisition value. $2.5 billion (Announced September 10, 2018)

  Source

• 2014

  Acquire TASCM&A

  Background

  Engility pursued a larger combination with another Washington-area defense and intelligence contractor.

  Action taken

  It announced an all-stock acquisition of TASC, with KKR and General Atlantic receiving a 51 percent stake in Engility Holdings.

  Aftermath

  The transaction was completed in 2015, TASC remained a subsidiary brand, and the reported final value reached approximately $1.3 billion.

  Reported transaction value. $1.3 billion (Transaction completed in 2015)

  Source

• 2013

  Acquire Dynamics Research CorporationM&A

  Background

  Engility sought to broaden its federal engineering and technical-services portfolio.

  Action taken

  It agreed to acquire Dynamics Research Corporation for approximately $120.9 million and completed the transaction in January 2014.

  Aftermath

  The acquisition expanded Engility's government-services capabilities.

  Transaction value. $120.9 million (Announced December 2013; completed January 2014)

  Source

• 2012

  Spin off the L-3 services businessStrategy

  Background

  L-3 Communications separated its services division from its product businesses.

  Action taken

  The services operation became the independent, publicly traded Engility Holdings.

  Aftermath

  Engility operated as a standalone federal contractor headquartered in Chantilly, Virginia.

  Source

1. 1Engilityen.wikipedia.org