Veritas Capital To Acquire Lockheed Martin’s Enterprise Integration Group


New York, NY (October 13, 2010) – Veritas Capital Fund IV announced today that it has signed a definitive agreement to purchase Lockheed Martin Corporation’s Enterprise Integration Group (“EIG”) for $815 million.

EIG, headquartered in Valley Forge, PA, is a leading provider of mission-critical systems engineering and integration services and modeling, simulation, analysis and risk mitigation services to the U.S. intelligence community.

On June 2, Lockheed Martin announced its intention to divest EIG based on the U.S. Government's increased concerns regarding perceived organizational conflicts of interest (“OCI”).

“Lockheed Martin’s decision to divest EIG provided us with a unique and exciting opportunity to partner with a truly outstanding business and world-class management team,” said Robert B. McKeon, Founder and Managing Partner of Veritas Capital. “EIG’s technical capabilities have distinguished it as the unparalleled leader in full life-cycle systems engineering and integration support to the U.S. intelligence community.”

“The company’s scientists, engineers and other highly skilled professionals, led by Bill Graham, Chief Executive Officer, have made major contributions to protecting the United States from a wide range of threats and helped to advance our nation’s interests for more than four decades,” added Mr. McKeon. “We welcome EIG, the critical work it does, and its talented management team to the Veritas portfolio of companies, and we look forward to supporting management in accelerating growth and expanding EIG’s opportunities to service its important customers as an independent business, free from OCI constraints. We are pleased to be the custodian of such an important national asset.”

Mr. William L. Graham, CEO of EIG, said, ”We are pleased and excited to partner with the Veritas Capital team. Veritas is the preeminent private equity firm focused on the government sector, and they have an unparalleled record of success working with differentiated, technology-focused companies similar to EIG. We are confident that aligning with Veritas and its impressive portfolio of government services companies, resources and strategic reach will help us further grow and expand our business.”

For the twelve months ended June 30, 2010, EIG generated revenue of $626 million. EIG has approximately 1,800 employees, and there are no changes anticipated with regard to the company’s management or operations upon change of control. The transaction is subject to Hart-Scott-Rodino review.

About Veritas Capital
Founded in 1992 and headquartered in New York, Veritas Capital is a leading private equity investment firm that invests in companies that provide critical products and services to governments worldwide. Since its founding, Veritas has been involved as the lead investor in transactions totaling more than $8 billion in value. Veritas is the premier private equity firm focused on the defense and government services sector and ranks in the top decile in terms of investment performance since its founding. For more information, please visit http://www.veritascapital.com.

Media contact:
Sitrick And Company
Michael S. Sitrick (mike_sitrick@sitrick.com) or Lewis M. Phelps (lew_phelps@sitrick.com)
Phone: 310-788-2850

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