LEIDOS DEAL TO DOUBLE ENERGY INFRASTRUCTURE ENGINEERING UNIT AS UTILITY SPENDING RISES
RESTON, Va. -- Leidos has agreed to acquire ENTRUST Solutions Group from private equity firm Kohlberg in a transaction valued at approximately $2.4 billion, significantly expanding its engineering services footprint in the U.S. energy and utilities sector.
The deal will roughly double the size of Leidos’ energy infrastructure engineering business, which currently generates about $600 million in annual revenue. That business provides engineering and technical services to electric utilities, primarily focused on transmission and distribution systems. Leidos has operated in the sector for more than 20 years, supporting commercial utility customers across the United States.
ENTRUST Solutions Group brings a broader set of engineering capabilities that span power generation, transmission and distribution for both electric and gas utilities. The acquisition is expected to expand Leidos’ utility customer base and deepen its involvement across the full power delivery lifecycle, from generation assets to downstream grid infrastructure.
Following the transaction, Leidos’ combined energy engineering workforce will exceed 5,500 professionals. The company said the acquisition aligns with its long-term growth strategy, which prioritizes infrastructure modernization, engineering services and technology-enabled solutions for critical national systems.
The transaction comes as U.S. utilities prepare for large-scale investment to modernize aging grid infrastructure, expand capacity and improve resilience against extreme weather. Industry forecasts project utilities will invest roughly $1 trillion over the next decade to upgrade and secure the electrical grid in response to rising electricity demand, electrification trends and reliability concerns.
The acquisition is subject to customary regulatory approvals and closing conditions.
The Leidos-ENTRUST deal highlights accelerating consolidation in the energy engineering and infrastructure services market as utilities face mounting pressure to modernize the U.S. power grid. By combining scale, technical depth and a broader customer base, Leidos is positioning itself to capture a larger share of long-term utility spending tied to grid resilience, energy security and national infrastructure priorities.