A Houston-based government services company continues to get bigger.
KBR Inc. (NYSE: KBR) will acquire Columbia, Maryland-based Honeywell Technology Solutions Inc. for about $266 million, after adjustments for approximately $34 million of acquired tax benefits, among other things, according to a release.
The transaction is expected to close in October and initially will be funded through KBR’s existing line of credit facility, per the release.
HTSI’s estimated annual revenue is about $600 million, according to the release. The company has about 3,550 employees across the world.
“The inclusion of HTSI further diversifies KBR’s offerings and provides more balance between the engineering and construction (E&C) segment of our business and the rest of KBR’s business, which is a combination of our government services and the technology and consulting businesses,” KBR President and CEO Stuart Bradie said in the release. “This balance provides KBR with a strong base load of high-value, low-risk, more predictable and long-term earnings capabilities to balance the more cyclical E&C sector while expanding our ability to share resources between the segments.”
HTSI mainly serves NASA, the U.S. Department of Defense and the U.S. intelligence community. KBR plans to integrate HSTI into KBRwyle, a wholly owned subsidiary of KBR, to develop a more robust aerospace and defense government services program, per the release.