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Engility, CACI and SAIC do the federal services consolidation tango

On Wednesday, July 11, Reuters released an exclusive report citing unnamed sources that U.S. federal services contractor Engility (NYSE: EGL) is exploring a sale. The report noted interest in Engility from federal services peers CACI (NYSE: CACI) and SAIC (NYSE: SAIC), which both dwarf Engility in size at $4.45 billion and $4.55 billion, respectively, in TBR-estimated 2018 revenues, compared with Engility’s $1.87 billion. The report was no surprise to TBR, as we have been monitoring the consolidation trend within the federal services sector over the past several years, including past deals such as CACI’s acquisition of L-3 National Security Solutions, Leidos’ purchase of Lockheed Martin Information Systems & Global Solutions and General Dynamics’ recently completed acquisition of CSRA.