Carlyle Group to acquire ManTech International

ManTech International is headquartered in Northern Virginia. (ManTech)

US government services provider ManTech International Corporation, which has been publicly traded since 2002, will become a privately held entity under a USD4.2 billion cash takeover offer it has accepted from US investment firm Carlyle Group, ManTech announced on 16 May.

“Following a comprehensive review of strategic alternatives”, ManTech's board of directors “determined that this transaction is in the best interest of our shareholders”, who will receive a 32% premium on their stock's price, the company said. “As a private company with Carlyle as our partner, ManTech will have added flexibility and resources to advance capabilities, capitalise on significant opportunities ahead, and build upon our success.“

George Pedersen, 85, who co-founded ManTech in 1968, recently left the board and reduced his voting stake in the company to facilitate a takeover, Cowen analyst Gautam Khanna wrote in a research “note”. Other government contractors that might have been seen as potential buyers, including CACI International, Jacobs Engineering, and Leidos, are too busy integrating acquisitions or have too much debt to purchase ManTech, Khanna added.

Dayne Baird, a managing director on Carlyle's Aerospace & Government Services team, said his firm plans to use its “sector expertise and resources to accelerate growth and innovation” at ManTech.

ManTech said it expects the transaction to close in the second half of 2022 after receiving the approval of its shareholders and regulators.

ManTech is based in Herndon, Virginia, and employs about 9,800 people. Its recently announced contract awards include USD118 million to provide engineering support for US Navy unmanned aircraft, USD88 million to provide test and evaluation support for US Navy weapons and combat systems, and USD136 million to support the US Marine Corps Warfighting Laboratory.