General Dynamics enters definitive agreement to acquire Vangent

General Dynamics (NYSE: GD) has entered a definitive agreement to acquire Vangent Holding Corp., the parent company of Vangent, Inc., a leading provider of healthcare information-technology and business systems to federal agencies, in a cash transaction valued at approximately $960 million.  Vangent is majority-owned by The Veritas Capital Fund III, L.P.  Vangent will become part of General Dynamics Information Technology, which has been providing healthcare information-technology (IT) systems and solutions to federal, commercial and military customers for nearly 30 years.

The proposed acquisition, which has been approved by the board of directors of General Dynamics and by the seller, would be accretive to General Dynamics' earnings in 2012.  The transaction is subject to customary closing conditions (including normal regulatory approvals) and is expected to close by October 1.

"Vangent is a well-regarded, fast-growing company that will add significant depth and breadth to General Dynamics' healthcare IT organization, creating a Tier 1-level healthcare IT business unit with the scope and scale to compete in markets that are receiving high priority in current funding and entitlement-reform initiatives," said Jay L. Johnson, chairman and chief executive officer of General Dynamics.  "Increasingly agencies will rely on efficient, modern business and information systems as key enablers of their citizen-service missions, and Vangent is a leader in meeting those information technology and business system requirements."