U.S. government contractor Engility Holdings Inc, said it would purchase privately held TASC, a provider of professional services to government agencies, for about $1.1 billion, including debt.Engility's shares rose 4.2 percent in extended trading on Tuesday.The deal comes at a time when the U.S. government is cutting spending, particularly on defense and security. These cuts have hit professional services providers that are primarily dependant on business from the government.Engility, which provides skilled personnel to U.S. departments of defense and justice among others, said the combined company is expected to generate revenue of about $2.5 billion this year.
Engility Holdings, Inc. (Engility) is a provider of systems engineering services, training, program management, and operational support for the United States Government worldwide. Shares of EGL traded higher by 3.78% or $1.37/share to $37.62. In the past year, the shares have traded as low as $30.19 and as high as $46.25. On average, 96352 shares of EGL exchange hands on a given day and today's volume is recorded at 88200.
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