Defense contractor General Dynamics said Tuesday it will expand its health care information technology business by buying Vangent Holding Corp. for about $960 million in cash.
Vangent, the parent of Vangent Inc., is currently owned by the private equity firm Veritas Capital Fund. General Dynamics said the deal has been approved by its board and by Veritas Capital. It expects the purchase to close by Oct. 1 and said the acquisition will add to its profit in 2012.
Vangent primarily works with U.S. Departments of Health and Human Services, Education, Labor, State, and Defense. It provides a health information exchange, electronic health records and data analytics. The business has more than 7,500 employees.
"Vangent is a well-regarded, fast-growing company that will add significant depth and breadth to General Dynamics' health care IT organization," Jay L. Johnson, chairman and CEO of General Dynamics said in a statement. "Increasingly agencies will rely on efficient, modern business and information systems as key enablers of their citizen-service missions, and Vangent is a leader in meeting those information technology and business system requirements."
Shares of General Dynamics fell 73 cents to close at $62.04.