Sale to ettain group

Technology & Services
Sale to ettain group

Summary

Baird served as exclusive financial advisor to Leidos, Inc. on this transaction

About

Leidos Health, LLC (the “Company”), a wholly owned subsidiary of Leidos, Inc. (NYSE: LDOS), has been acquired by ettain group, a portfolio company of Alvarez & Marsal Capital (“A&M Capital”). Leidos Health, LLC has been carved out from Leidos, Inc. and will be re-branded as part of ettain group’s Healthcare IT practice as ettain health. Terms of the transaction were not disclosed.

Leidos Health, LLC is the commercial Electronic Health Records (“EHR") consulting business of Leidos, Inc. and is a market leading provider of EHR Implementation, Optimization and Go-Live services. The Company was originally formed through the acquisitions of Vitalize Consulting Solutions and MaxIT Healthcare in 2011 and 2012, respectively. Leidos Health, LLC is headquartered in Westfield, Indiana.

Leidos, Inc. is a Fortune 500® information technology, engineering, and science solutions and services leader working to solve the world's toughest challenges in the defense, intelligence, homeland security, civil, and health markets. Leidos' 33,000 employees support vital missions for government and commercial customers. Leidos, Inc. reported annual revenues of approximately $10.19 billion for the fiscal year ended December 28, 2018. Leidos, Inc. is headquartered in Reston, Virginia.

Leidos, Inc.’s divestiture and ettain group’s acquisition of Leidos Health, LLC illustrates the following M&A themes: corporate streamlining through divestitures and portfolio shaping, pursuit of scale and diversification driving consolidation in the IT staffing market, and private equity interest in health IT. Leidos, Inc. retains a large Healthcare business that serves government and commercial customers.

ettain group is a leading talent solutions firm that delivers Recruitment Services and Managed Services in three practice areas: IT, Healthcare IT, and Digital Creative. From discovery to execution, ettain group helps clients successfully design, develop, and deliver critical technology and business initiatives, from providing individual resources, to staffing and managing critical programs and projects, to running entire recruitment processes. Founded in 1996, with nearly 1,300 employees and consultants currently at work, ettain group offers opportunities across North America, with offices in Charlotte, Dallas, Minneapolis, Nashville, Raleigh, Washington, D.C., and Winston Salem. ettain group is headquartered in Charlotte, North Carolina.

A&M Capital is a multi-strategy private equity investment firm with over $3 billion in assets under management across four funds and three investment strategies. The firm is led by a highly experienced investment team, which is augmented by a strategic association with Alvarez & Marsal ("A&M"), one of the largest operationally-focused advisory firms in the world. A&M Capital combines a focus on middle-market private equity investing, with deep operational expertise, industry knowledge and global corporate relationships, making A&M Capital an attractive partner to management teams and business owners. A&M Capital is headquartered in Greenwich, Connecticut.
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Technology & Services
Sale to ettain group
Date
October 2019
Company
Leidos Health, LLC
Transaction
M&A
Sectors
Technology & Services
Target Location
North America
Acquiror Location
North America

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