Kohlberg Completes Strategic Exit with Sale of ENTRUST Solutions Group to Leidos

Kohlberg & Company, a leading private equity firm, has officially announced the sale of ENTRUST Solutions Group to Leidos in a landmark transaction valued at USD 2.4 billion. The deal represents a major milestone for all parties involved and highlights the growing strategic importance of infrastructure, energy, and engineering services in the United States and globally.

The transaction, originally reported via an official announcement, underscores Kohlberg’s successful investment strategy and Leidos’ ambition to expand its capabilities across power, energy, transportation, and critical infrastructure sectors.

Overview of the $2.4 Billion Transaction

The acquisition agreement brings together two highly complementary organizations. ENTRUST Solutions Group, known for its deep expertise in engineering, consulting, and technical services, will become a key component of Leidos’ expanding commercial and government services portfolio.

Under the terms of the deal, Leidos will acquire ENTRUST Solutions Group from funds managed by Kohlberg & Company for approximately $2.4 billion in cash. The transaction is expected to close in 2026, subject to customary regulatory approvals and closing conditions.

Why This Deal Matters

This acquisition is significant for several reasons:

• It strengthens Leidos’ position in the fast-growing energy and infrastructure services market.
• It marks a successful exit for Kohlberg after years of operational growth at ENTRUST.
• It reflects rising demand for modernization of energy grids, transportation networks, and digital infrastructure.

Background of Kohlberg & Company

Kohlberg & Company is a U.S.-based private equity firm with decades of experience investing in middle-market companies. The firm focuses on long-term value creation through operational improvements, strategic acquisitions, and disciplined financial management.

Kohlberg acquired ENTRUST Solutions Group with a clear vision: to scale the business, expand its service offerings, and position it as a leader in engineering and infrastructure solutions. Over the course of its ownership, Kohlberg supported management initiatives that significantly increased revenue, broadened client relationships, and enhanced technical capabilities.

Kohlberg’s Investment Strategy in Action

The sale of ENTRUST demonstrates Kohlberg’s hands-on investment approach. Rather than focusing solely on financial engineering, the firm emphasizes operational excellence, leadership development, and sustainable growth. This philosophy enabled ENTRUST to evolve into a highly attractive acquisition target for a global company like Leidos.

ENTRUST Solutions Group: A Leader in Engineering and Infrastructure Services

ENTRUST Solutions Group is widely recognized for delivering specialized engineering, consulting, and project management services. Its core areas of expertise include:

• Power generation, transmission, and distribution
• Energy grid modernization and resilience
• Oil and gas infrastructure
• Transportation and telecommunications systems

The company serves a diverse client base, including utilities, energy producers, municipalities, and private enterprises. ENTRUST has built a strong reputation for safety, reliability, and technical excellence.

Growth Under Kohlberg Ownership

During Kohlberg’s ownership period, ENTRUST experienced substantial growth. This included organic expansion as well as strategic acquisitions that enhanced its geographic footprint and service capabilities. Investments in digital tools, workforce development, and safety systems further strengthened the company’s competitive position.

Leidos: Expanding Capabilities Through Strategic Acquisition

Leidos is a global science and technology company known for providing solutions in defense, intelligence, civil, and health markets. In recent years, Leidos has actively pursued growth opportunities in energy and infrastructure, recognizing the long-term demand driven by climate change, population growth, and technological transformation.

The acquisition of ENTRUST aligns closely with Leidos’ strategic priorities. By integrating ENTRUST’s engineering and consulting expertise, Leidos will be better positioned to deliver end-to-end solutions across critical infrastructure domains.

Strategic Fit and Synergies

Leidos executives emphasized that ENTRUST’s strong customer relationships, skilled workforce, and technical depth complement Leidos’ existing capabilities. Together, the combined organization will be able to offer more comprehensive solutions to both commercial and government clients.

The transaction is expected to create operational synergies, expand cross-selling opportunities, and accelerate innovation in areas such as grid modernization, renewable energy integration, and infrastructure resilience.

Impact on the Energy and Infrastructure Market

The $2.4 billion deal reflects broader trends shaping the global infrastructure market. Governments and private sector organizations are investing heavily in modernizing aging infrastructure, transitioning to cleaner energy sources, and improving system resilience against natural disasters and cyber threats.

ENTRUST’s capabilities in power and energy infrastructure make it a valuable asset as utilities and regulators push for smarter, more sustainable systems. Under Leidos’ ownership, ENTRUST is expected to play a key role in delivering large-scale, complex projects that address these challenges.

Meeting Future Infrastructure Demands

As energy consumption patterns evolve and electrification accelerates, demand for engineering and consulting services is expected to grow. The combined Leidos-ENTRUST organization will be well-positioned to support:

• Renewable energy integration
• Grid reliability and cybersecurity
• Transportation electrification
• Critical infrastructure modernization

Financial and Operational Implications

From a financial perspective, the acquisition represents a significant investment by Leidos, reflecting confidence in ENTRUST’s long-term growth potential. The transaction is expected to be accretive to Leidos’ earnings over time, supported by strong cash flows and expanding market demand.

For Kohlberg, the sale delivers a successful return on investment while validating its strategy of building high-quality, scalable businesses.

Workforce and Leadership Continuity

Both companies have indicated that maintaining continuity will be a priority. ENTRUST’s leadership team and employees are expected to remain in place, ensuring stability for clients and ongoing projects. Leidos has emphasized its commitment to supporting ENTRUST’s culture, safety standards, and employee development programs.

Regulatory Review and Expected Closing Timeline

As with transactions of this scale, the sale is subject to regulatory review and customary closing conditions. Both parties anticipate a smooth approval process given the complementary nature of their businesses.

The deal is expected to close in 2026, at which point ENTRUST will officially become part of the Leidos organization.

Industry Reactions and Market Confidence

Industry analysts have responded positively to the announcement, noting that the acquisition strengthens Leidos’ competitive position while highlighting the continued attractiveness of infrastructure-focused assets.

The transaction also sends a strong signal to the market about the value of engineering and consulting firms that support critical national infrastructure.

Conclusion: A Transformational Deal for All Stakeholders

The $2.4 billion sale of ENTRUST Solutions Group from Kohlberg to Leidos represents a transformational moment in the infrastructure and energy services sector. It showcases Kohlberg’s ability to create value through strategic ownership, ENTRUST’s evolution into an industry leader, and Leidos’ commitment to long-term growth in critical markets.

As global infrastructure needs continue to expand, this acquisition positions Leidos and ENTRUST to play a pivotal role in shaping the future of energy, transportation, and essential services.

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