General Dynamics to buy Vangent for $960 million

17 Aug 2011

Defense contractor General Dynamics yesterday said it will acquire healthcare information technology company Vangent Inc from Veritas Capital, for about $960 million to expand in the growing market of healthcare IT solutions.

Vangent, based in Arlington, Virginia, provides healthcare information solutions to the US Departments of Health and Human Services, Education, Labour, State and Defense.

The company, which generated $761 million in revenue last year, specialises in health informatics and information exchange, electronic health records and data analytics, as well as business-process outsourcing solutions.

Veritas had acquired Vangent, formerly Pearson Government Solutions, in 2007 from London-based media and education company Pearson Plc for $600 million. Pearson is the owner of the Financial Times Group.

Fairfax, Virginia-based General Dynamics' information technology division, provides information technology, systems engineering, professional services and simulation and training support to customers in the defence, intelligence, homeland security, health, federal civilian, state and local government and commercial sectors.

With approximately 17,000 employees worldwide, the company manages large-scale, mission-critical programs delivering IT services and enterprise solutions.