Engility

Engility Holdings, Inc.
Company type	Public
Industry	Defense contracting, Engineering, Logistics support
Predecessor	L3 Technologies (services division)
Founded	2012; 14 years ago
Defunct	2019
Fate	Acquired by Science Applications International Corporation (SAIC)
Successor	SAIC
Headquarters	Chantilly, Virginia, United States
Area served	United States Armed Forces, civilian government entities
Key people	Tony Smeraglinolo (initial CEO), Lynn Dugle (CEO from 2016)
Products	Engineering and logistics support services
Number of employees	~11,000 (after 2015 merger) (2015)

Engility Holdings, Inc. was a publicly listed American firm specializing in engineering and logistics support services for multiple United States Armed Forces branches and civilian government entities. Based in Chantilly, Virginia, Engility was established in 2012 following a spin-off from the services division of L3 Technologies. By 2017, the company’s annual revenue approached $2 billion. On September 10, 2018, Science Applications International Corporation (SAIC) announced it would acquire Engility for approximately $2.5 billion, leading to the retirement of the Engility name.

History

Engility began as L-3 Services, Inc., becoming an independent publicly traded company in July 2012 after separating from L-3 Communications Corporation. At inception, its revenue ranged between $1.6 billion and $2 billion, with a workforce of roughly 9,000 to 10,000 employees. Tony Smeraglinolo, who had served as EVP of L-3 Services Group, was named CEO. After the spin-off, Engility established its main office in Chantilly, Virginia, taking control of the majority of L-3’s services operations while L-3 retained its product lines.

In January 2013, Engility resolved lawsuits involving 71 former Abu Ghraib detainees with a settlement of $5.28 million; these claims were inherited through L-3's acquisition of Titan Corporation, which had provided translation services under a U.S. military contract.

December 2013 saw Engility agree to purchase Dynamics Research Corporation, headquartered in Andover, Massachusetts, for $120.9 million. This acquisition was finalized in January 2014 and fully integrated to support business expansion.

In October 2014, Engility revealed intentions to acquire Chantilly-based defense contractor TASC via a $1.1 billion all-stock transaction. Through this merger, private equity firms KKR and General Atlantic, former TASC owners, obtained a 51% ownership stake in Engility. The deal closed in February 2015 at $1.3 billion; TASC’s CEO John Hynes joined Engility as COO while TASC operated as a subsidiary.

These targeted acquisitions broadened Engility’s footprint and diversified its offerings within the defense contracting sector.

Operations

Since its separation from L-3, Engility has maintained its headquarters in Chantilly, Virginia, part of the Washington metropolitan area. In March 2013, the company reduced its contingent workforce by approximately 40%, cutting roles in accounting, human resources, and payroll departments; this resulted in an overall employee reduction of 4% from a base of 7,800 staff members. Following the merger with TASC in 2015, Engility’s employee count increased to about 11,000 personnel, including roughly 4,000 located near Washington D.C.

In March 2016, Lynn Dugle—formerly an executive at Raytheon—was appointed CEO of Engility. By June 2017, the positions of president and COO were eliminated; John Hynes, who held those roles and was previously TASC’s CEO, exited the company at that time. That same month, Engility secured a contract with the US Air Force to provide consulting services related to space vehicle and missile systems at Los Angeles Air Force Base. Later in November 2017, the company won a $30 million contract for modernization work from the US Navy.

As of March 2018, Engility reported revenues totaling $1.93 billion alongside a net loss amounting to $35.2 million for the preceding fiscal year.

External links

Corporate homepage