Leidos Holdings, which provides solutions for the science and technology sector, has acquired 1901 Group, a managed IT services and cloud solutions provider in the private and public market, for $215 million.
This is M&A deal number 522 that ChannelE2E has covered so far in 2020. See the full M&A deal list here.
Headquartered in Reston, Virginia, 1901 Group has more than 400 employees spread across 26 locations in the United States. The company will be rolled into Leidos’ defense business segment, advancing the firm’s position in the digital modernization market, Leidos said.
Founded in 2009 by CEO Sonu Singh, 1901 offers cloud-backed IT services to government agencies looking to shake off the burden of legacy technologies for more innovative solutions. It’s a sector that has only grown in the intervening years, as the U.S. government has started implementing cloud computing solutions into various federal operations.
As a result, 1901 has worked with a number of different and varied departments including Agriculture, Education, Health, Human Services, and Justice, as well as various military branches.
Leidos Acquires 1901 Group: Navigating Growing Trends
Leidos chairman and CEO Roger Krone commented on the deal:
“We are pleased to welcome 1901 Group’s team of digital transformation experts who share Leidos’ commitment to making the world safer, healthier, and more efficient through IT. Leidos and 1901 Group both strive to provide customers with progressive, agile, and secure solutions. Together, we will be better positioned to continue successfully providing these critical solutions while navigating growing trends in the IT marketplace.”
Gerry Fasano, Defense Group president at Leidos, added:
“1901 Group will provide substantial new capabilities to enhance the value we bring to existing defense customers and position Leidos to meet the growing demand for cloud-based solutions in the defense market. The Leidos Defense Group will work to ensure these new capabilities are readily accessible to enhance our offerings and pursuits across the company.”
Sonu Singh, founder and CEO of 1901 Group said:
“1901 Group is very excited about our future with Leidos. We have closely shared values based upon a commitment to our customers, our employees, and our mission of utilizing untapped IT talent across all geographies. The opportunities this acquisition will unlock by combining our Enterprise IT Operations Centers and secure FedRAMP platform with the unmatched depth and scale of Leidos sets us up for great success. We look forward to closing this deal and officially becoming a part of Leidos.”
1901 Group: Assets and Investments
In addition to 1901’s headquarters in Reston, Virginia, the company has an enterprise IT operations center near Blacksburg, Virginia. In 2018, the company invested $4 million to add 800 new jobs to its corporate and Montgomery County, Virginia offices by 2021.
Enlightenment Capital, a Chevy Case-based technology investment firm, invested in 1901 in 2017.
