General Dynamics delves further into health IT with $960M buy

General Dynamics has entered a definitive agreement to acquire Vangent Holding, the parent company of Vangent, a developer of health IT and business systems to federal agencies, in a cash transaction valued at approximately $960 million.

Vangent is majority-owned by the Veritas Capital Fund. Vangent will become part of General Dynamics IT, which has been providing health IT to federal, commercial and military customers for nearly 30 years.

The proposed acquisition, which has been approved by the board of directors of General Dynamics and by the seller, would be accretive to General Dynamics' earnings in 2012. The transaction is subject to customary closing conditions (including normal regulatory approvals) and is expected to close by Oct. 1.

Vangent, based in Arlington, Va., will add "depth and breadth to General Dynamics' healthcare IT organization," said Jay L. Johnson, chair and CEO of General Dynamics.

Vangent primarily supports the U.S. Departments of Health and Human Services, Education, Labor, State and Defense. The company, which employs about 7,500 employees, offers include health informatics and information exchange, EHRs and data analytics, as well as business process outsourcing technologies.

General Dynamics IT, headquartered in Fairfax, Va., provides IT, systems engineering, professional services and simulation and training support to customers in the defense, intelligence, homeland security, health, federal civilian, state and local government and commercial sectors. The overall company has approximately 17,000 professionals worldwide.