Companies
Leidos Inks $2.4B Deal to Buy Power Design Firm ENTRUST Solutions
Professional services firm Leidos Holdings Inc. said Jan. 27 that it would acquire utility engineering services company ENTRUST Solutions Group from private equity firm Kohlberg & Co. for $2.4 billion to boost its energy infrastructure market capacity. The deal, financed by cash and new debt, is set to close by the end of June, said Kohlberg, which has owned the firm since buying it in 2019 for an undisclosed amount.
The Warrenville, Ill.-based company ranks at No. 60 on the ENR Top 500 Design Firms, reporting $488.6 million in 2024 design revenue, with 98% in the energy sector. ENTRUST Solutions also ranks at No. 8 on the list of Top 50 power sector engineers. It specializes in services related to natural gas, pipeline integrity, automation, electrical design, fiber/broadband and environmental services, among other areas, the firm said, and has more than 3,100 professionals in 40 North America offices.
The purchase would double Leidos' energy market size and “is a bold step forward in support of [its] growth strategy,” said CEO Thomas Bell. The firm now ranks fourth among the top 25 engineering firms ENR ranks in transmission and distribution revenue. In a Jan. 26 presentation to investors about the deal, he said the firm's energy business "has long been a hidden gem within Leidos, with its double-digit growth and double-digit margins. We've stepped up investment in our proprietary grid engineering and AI design tools, including Skywire that makes Leidos' design processes smarter, more efficient and more effective for customers."
With U.S. utilities set to invest $1 trillion over the next decade to strengthen and secure the U.S. grid, Bell said that ENTRUST Solutions' financial performance "is underpinned by highly visible revenue streams tied to long-term master service agreements" with diversified U.S. utilities, and stressed that the energy market "is fragmented and beginning to consolidate." With the acquisition, "Leidos will become a scale player in this market and we will cement our position in exactly the area where the market is growing robustly."
The combination will expand energy engineering capabilities to create an end-to-end infrastructure platform, said ENTRUST Solutions CEO Adam Biggam, who has held the role since 2021 and joined the firm under its former name in 2005. “Our combined 5,500-plus energy professionals will have the resources, technology and reach to tackle the most complex challenges facing the utility and power markets today,” he said.
Biggam is set to remain at the combined firm for two years, Leidos said, but his new title was not disclosed. The companies also did not disclose details of their integration and how or whether ENTRUST Solutions will be rebranded.
The firm, formerly known as EN Engineering, rebranded to its current name in 2022 in broadening its services beyond engineering. Current utility clients include Duke Energy, Southern Co., Florida Power & Light, American Electric Power, Southwest Gas and Washington Gas. Leidos says it works with 75 investor-owned utilities. "more than 100 municipalities and cooperatives" and "a growing number of private developers," according to its website.
Looking for quick answers on construction and engineering topics?
Try Ask ENR, our new smart AI search tool.
Ask ENR →
Bell noted new cross-selling opportunities to ENTRUST Solutions' added stable of gas utility clients and said the new parent would offer it "cybersecurity tools that Leidos is known for as a national security contractor."
Leidos said it will hold an investor call to report its full year and fourth quarter 2025 financial results on Feb. 17.
