Leidos Expands Energy Infrastructure Presence With $2.4B ENTRUST Deal

Leidos Holdings, Inc. LDOS recently revealed that it has inked an agreement to acquire ENTRUST Solutions Group from Kohlberg for nearly $2.4 billion, funded through a mix of new debt, cash on hand and commercial paper. The transaction is anticipated to close by the end of the second quarter of 2026.

How Will the Buyout Benefit LDOS Stock?

ENTRUST Solutions Group’s deep engineering expertise across electric and gas transmission and distribution is set to significantly expand Leidos’ utility infrastructure footprint, effectively doubling its $600 million energy infrastructure engineering business and strengthening its role in grid modernization. The deal broadens Leidos’ customer base across power delivery while adding highly complementary capabilities from generation through distribution, positioning it as a more comprehensive, end-to-end engineering partner for utilities nationwide.

The acquisition aligns closely with Leidos’ NorthStar 2030 strategy, reinforcing its push into secure, resilient energy infrastructure, a market supported by an expected $1 trillion in U.S. utility investment over the next decade. ENTRUST’s track record of consistent growth and strong profitability is expected to improve revenue visibility and margin strength.

With rising demand for grid reliability, renewable integration and climate resilience, the expanded platform improves Leidos’ competitive positioning in a structurally expanding market, supporting long-term revenue growth, earnings durability and a more compelling long-term outlook for LDOS stock.

Companies’ Focus on Acquisition & Merger

The computer and technology sector has seen a strong rise in mergers and acquisitions, driven by rapid innovation, digital transformation and intensifying competition. These transactions help companies scale operations, access specialized talent, strengthen software and hardware capabilities and accelerate development. Through acquisitions, firms expand product portfolios, enter new markets and enhance platform ecosystems, enabling them to deliver more advanced solutions, improve competitive positioning and capture greater market share.

Leidos’ latest decision to acquire ENTRUST Solutions Group seems to have been motivated by some of the aforementioned factors.

Other computer and technology companies that recently indulged in acquisition deals are as follows.

On Jan. 26, 2026, IonQ IONQ inked an agreement to acquire SkyWater Technology SKYT for nearly $1.8 billion. The buyout is expected to significantly accelerate IonQ’s quantum computing roadmap while helping secure a fully scalable, domestic supply chain.

The Zacks Consensus Estimate for IONQ’s 2026 earnings per share (EPS) is pegged at a loss of $1.74, indicating a year-over-year rise of 65.8%. The Zacks Consensus Estimate for 2026 sales stands at $198.8 million, which indicates a rise of 83.3%.

In December 2025, NVIDIA Corporation NVDA acquired SchedMD, the primary developer of Slurm, an open-source workload management platform used in high-performance computing and AI. The move is aimed at reinforcing the open-source software ecosystem and accelerating AI innovation for researchers, developers and enterprise users.

The Zacks Consensus Estimate for NVDA’s fiscal 2026 EPS is pegged at $4.66, indicating a year-over-year improvement of 55.9%. The Zacks Consensus Estimate for 2026 sales stands at $212.6 billion, which indicates a jump of 62.9%.

LDOS Stock Price Movement

In the past six months, shares of Leidos have gained 17.3% against the industry’s decline of 10.1 %.

Leidos’ Zacks Rank

LDOS currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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