SAIC

SAIC separated from Leidos in September 2013, inheriting a government IT services portfolio generating $3.9 billion in annual revenue. By FY2015 (fiscal year ended January 30, 2015), revenue had settled to $3.9 billion with computed EBITDA of approximately $261 million (6.7% margin) — comprising net income of $141 million, interest expense of $17 million, taxes of $82 million, and depreciation/amortization of $21 million (10-K FY2015, filed March 31, 2015). SAIC's contract portfolio was approximately 30% firm-fixed-price with the remainder flexibly priced (cost-reimbursement and time-and-materials). The company needed to improve profitability in a constrained federal IT budget environment shaped by sequestration, without relying on top-line growth alone. Its workforce numbered approximately 13,000 employees, with the majority holding active security clearances.

SAIC pursued a transformative acquisition strategy combined with operational improvements:

• Engility acquisition (January 2019): Acquired Engility Holdings in a $2.5 billion all-stock transaction (including assumption of $900 million in Engility debt), announced September 2018 and completed January 14, 2019. The deal was structured as a fixed exchange ratio with SAIC shareholders owning approximately 72% and Engility shareholders approximately 28% of the combined company. Engility brought intelligence community, space, and defense-focused contracts with a heavily cleared workforce, creating a pro-forma combined entity with $6.5 billion in revenue (Engility Acquisition 8-K, September 10, 2018).
• Synergy realization: Targeted $75 million in net cost synergies from the Engility integration through elimination of duplicative overhead, consolidation of facilities, and shared back-office functions.
• Digital transformation capabilities: Invested in software-defined solutions including cloud migration, DevSecOps, and data analytics capabilities that command higher bill rates and support outcome-based pricing on new contract awards.
• Backlog expansion: Grew total backlog to $22.8 billion ($3.5 billion funded) by FY2024, providing multi-year revenue visibility across approximately 1,800 active contracts and task orders.
• Operational discipline: Strengthened program execution controls and earned value management to improve delivery margins across the combined portfolio.