KBR, Inc. (NYSE:KBR) entered into a definitive agreement to acquire LinQuest Corporation from Madison Dearborn Partners, LLC for approximately $740 million on July 16, 2024. The purchase price is $737 million, inclusive of modest expected tax benefits, which represents a 2025 FY Adj. EBITDA multiple of just over 11x. KBR will utilize a combination of cash and existing debt capacity to fund the transaction. The transaction has been unanimously approved by the KBR Board of Directors and is subject to certain regulatory approvals prior to closing. Transaction is expected to close in Q3 or Q4 2024. The transaction is expected to be accretive to adjusted EPS, which excludes amortization from purchased intangible assets and non-recurring transaction costs.

Arena Strategic Advisors, LLC acted as financial due diligence provider for KBR, Inc. Gibson, Dunn & Crutcher LLP acted as legal advisor for KBR, Inc. Robert W. Baird & Co. Incorporated is serving as financial advisor to Madison Dearborn Partners, LLC and LinQuest and Kirkland & Ellis LLP and Crowell & Moring LLP are providing legal counsel.