Deal Summary
On March 30, 2026, Leidos acquired ENTRUST Solutions Group, a developer of electricity transmission-based utility projects, for an estimated $2.4 billion. ENTRUST Solutions Group, founded in 2002 and based in Warrenville, Illinois, provides engineering, consulting, design, asset integrity, data solutions, and automation services to utilities and industrial customers across North America. The acquisition significantly expands Leidos' presence in the critical infrastructure sector, specifically electricity transmission and distribution.
The acquisition of ENTRUST Solutions Group allows Leidos to diversify its revenue streams beyond its traditional focus on healthcare IT and defense-related services. By integrating ENTRUST's expertise, Leidos gains the capability to offer end-to-end energy infrastructure solutions, broadening its client base to include a wider range of utility companies. For ENTRUST, becoming part of Leidos provides access to greater resources and a larger customer network, potentially accelerating project execution and growth. The combined entity will be positioned to capitalize on the increasing demand for modernizing and expanding energy grids.
This deal aligns with Leidos' "NorthStar 2030" strategy, which aims to pivot the company towards high-growth commercial and civil infrastructure markets. The acquisition effectively doubles Leidos' energy footprint and integrates over 3,100 specialized professionals with expertise in electric grid engineering and natural gas infrastructure. With an estimated $1 trillion in capital expenditure projected for U.S. grid upgrades over the next decade, Leidos is strategically positioned to benefit from the modernization of aging infrastructure and rising electricity demand driven by artificial intelligence, data centers, electric vehicles, and building electrification.
Recent M&A Activity in the Sector
The Electricity Transmission & Distribution Project Developer sector has experienced a surge in M&A activity, reflecting the growing need for grid modernization and expansion.
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SERFIM Acquires SK-Line: SERFIM, founded in 1875, a diversified French conglomerate with interests in public works, environmental businesses, and ICT, acquired SK-Line, based in France, a provider of aerial network construction and maintenance services. This acquisition strengthens SERFIM's capabilities in infrastructure development and expands its service offerings within the electricity transmission sector.
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Kodiak Gas Services Acquires Distributed Power Solutions: Kodiak Gas Services, founded in 2011 and based in Texas, an oil and gas equipment supplier and a leading provider of large horsepower contract compression services for the oil and gas market, acquired Distributed Power Solutions (DPS), based in Louisiana. DPS specializes in turnkey engineered power generation rental solutions, primarily using natural gas, for temporary and long-term power needs. This acquisition allows Kodiak to diversify its energy solutions and capitalize on the increasing demand for reliable power generation in various sectors.
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H&MV Engineering Acquires Cooke Power: H&MV Engineering, founded in 1997 and based in Ireland, a renewable energy developer and a global leader in high-voltage engineering and construction services, acquired Cooke Power, based in Texas. Cooke Power specializes in substation construction, testing, and maintenance, serving utilities, energy clients, renewables, and data centers. This acquisition enhances H&MV Engineering's presence in the North American market and expands its capabilities in substation infrastructure.
These recent acquisitions demonstrate a trend of established companies acquiring specialized players to expand their capabilities and market reach within the electricity transmission and distribution sector. The deals highlight the increasing importance of grid modernization and the growing demand for comprehensive energy infrastructure solutions.
