Mar 8, 2022
Vectrus and the Vertex Company have reached a merger agreement to combine their service offerings in support of various defense sector needs.
The all-stock transaction will officially close in the third quarter of 2022 and is intended to create a more wide-ranging revenue stream in terms of locations, customers and contract types from the Department of Defense and other branches of government, the companies announced Monday.
Together, Vectrus and Vertex are expected to provide an arsenal of integrated services and full-lifecycle technological strategies primed to address national security and modernization obligations.
Currently, Vectrus specializes in base operations services, supply chain and logistics, information technology and security. Meanwhile, Vertex’s core capabilities include aviation maintenance, systems engineering and integration and training programs for both public and private sector clientele.
“This highly strategic transaction builds on both companies’ accomplishments over the last several years and significantly accelerates our ability to deliver converged solutions,” said Chuck Prow, CEO of Vectrus and an eight-time winner of the Wash100 Award.
Prow will become CEO of the combined organization once the deal officially closes. Vectrus’ current chief financial officer, Susan Lynch, will continue in this role for the new company while the remainder of the executive lineup will be populated by members of both companies.
Vertex CEO and President Ed Boyington commented, “Vertex and Vectrus share mission-oriented foundations and cultural alignment. By joining forces with Vectrus, we will be better positioned to help the Department of Defense and government agencies achieve their objectives, and in the process, create a stronger organization.”
The two companies’ combined assets amount to a pro forma revenue of about $3.4 billion and an Adjusted EBITDA of about $283 million for the 2021 fiscal year. The starting EBITDA margin profile will be 8 percent with expectations of growth.
There is also backlog amounting to $11.3 billion. After the merger is complete, Vertex shareholders have agreed to own 62 percent of the company while Vectrus shareholders will own about 38 percent.
A name for the new company will be decided when the deal closes in the third quarter of 2022. Headquarters will be based in northern Virginia.
Feb 9, 2022
By Angeline Leishman
Vectrus (NYSE: VEC) has received a $250 million cost-plus-fixed-fee task order from the U.S. Army to perform logistics support work for Fort Benning in Georgia.
The award falls under the Enhanced Army Global Logistics Enterprise contract and includes options that would extend services through December 2026, the company said Tuesday.
Chuck Prow, president and CEO of Vectrus and an inductee into Executive Mosaic’s Wash100 for 2022, thanked the service branch for its “continued confidence” in the company.
The Colorado-based government services provider helps the Army operate, maintain and secure communications systems under a five-year, $882.5M recompete contract awarded in December 2020.
Feb 3, 2022
By Jane Edwards
February 3, 2022
Executive Mosaic is honored to present Vectrus President and CEO Chuck Prow as a 2022 Wash100 Award recipient, the eighth time he’s won the prestigious award in the nine-year history of Executive Mosaic’s annual selection of executives with staying power and influence in the government contracting sector.
Vectrus kicked off 2021 with the acquisition of HHB Systems in a deal that further expands its reach into the intelligence community following the purchase of Zenetex. Both moves expanded the company’s client base with new defense, intelligence and foreign military customers.
Amid the challenges posed by the COVID-19 pandemic, Prow reported strong third quarter results for Vectrus in November 2021, driven by a 30 percent year-over-year increase in revenue.
He said Vectrus ended Q3 2021 with a total backlog of approximately $5 billion and an adjusted diluted earnings per share of $1.15, reflecting a 19 percent year-over-year growth.
During the earnings call, Prow noted that the company is continuing to expand its presence in the Pacific or U.S. Indo-Pacific Command, which accounts for approximately 5 percent of Vectrus’ total revenue, up from 1 percent in the prior-year period.
“We believe INDOPACOM will be a key long-term growth driver for Vectrus, given the DoD’s intent to improve posture in the region,” Prow said. “Our prime position under LOGCAP V enables us to support our clients throughout the full range of operations in the region over the next decade.”
He mentioned notable contract wins with the Navy. These include a prime other transaction agreement to automate receipt and distribution processes for the Naval Air Warfare Center Aircraft Division using RFID technology; a contract to further develop Real-Time Spectrum Operation software for the Navy’s fleet; and a position on a five-year, $93 million indefinite-delivery/indefinite-quantity contract for research and development, integration, engineering, cybersecurity and sustainment support for the service’s tactical threat systems.
Prow discussed the company’s contract work on the Department of Defense’s potential $600 million 5G experimentation and testing program. He noted that Vectrus supported DOD’s first 5G project demonstration of a smart warehouse at Marine Corps Logistics Base in Albany, Georgia, particularly its role in the design, development and installation of a radio area network testbed.
He also offered an update on Vectrus’ work to build a 5G Smart Warehouse system at Naval Base Coronado under a three-year contract. Under the contract, the company will implement a 5G-ready environmental sensing, robotic material handling and inventory management platforms to support U.S. Navy transshipment activity.
During the call, Prow noted the company’s progress in advancing its data analytics, machine learning, sensor integration and internet of things offerings, which he said allows the company to deliver a more comprehensive and integrated set of platforms.
In November, the company’s new business pipeline was $11 billion, which Prow said reflects Vectrus’ continued focus on carrying out targeted growth campaigns to diversify its portfolio.
“Overall, we remain confident in our ability to successfully compete and win our fair share of new business,” he told analysts during the call.
In July 2021, the Colorado Springs, Colorado-based government services company announced that it booked $40 million in task orders to provide installation support services for the U.S. Air Force. The task orders were awarded under the $6.4 billion Air Force Contract Augmentation Program V indefinite-delivery/indefinite-quantity contract.
“These recent wins build on our AFCAP wins that were announced in the first quarter and demonstrate Vectrus’ ability to support our clients contingency and humanitarian support requirements with a full range of facilities and logistical services across the globe,” said Prow.
Before 2021 ended, a Vectrus subsidiary secured a $92.1 million contract modification to perform logistics support services for the U.S. Army. Vectrus Mission Solutions, which was formed following Vectrus’ acquisition of Alexandria, Virginia-based Sentel in January 2018, will conduct contract work in Fayetteville, North Carolina, through the end of March 2023.
Prow has been at the helm of Vectrus since December 2016. He brings to the position more than three decades of federal services and information technology experience. Prior to Vectrus, he held leadership roles at companies, including IBM and PwC. He currently sits on the boards of directors of the International Research & Exchanges Board and the Wolf Trap Foundation for the Performing Arts.
Executive Mosaic congratulates Chuck Prow and Vectrus on their Wash100 Award selection. Visit Wash100.com to cast a vote for the eight-time winner as one of your 10 favorite GovCon leaders.
About the Wash100 Award
This year represents the ninth annual Wash100 award selection. The Wash100 is the premier group of private and public sector leaders selected by Executive Mosaic’s organizational and editorial leadership as the most influential leaders in the GovCon sector. These leaders demonstrate skills in leadership, innovation, reliability, achievement, and vision. Visitors to wash100.com can sign in and vote for the executives they believe will have the greatest impact on government contracting in the coming year.
Feb 2, 2022
By William McCormick
Vectrus announced on Tuesday that the company has expanded its Converged Environment service offering in order to address the most significant installation management challenges with the Department of Defense (DoD).
“Our Converged Environment offering meets the demands of the military while promoting cost savings, increased security, and more strategic use of resources — and rapidly enabling critical data-driven decision-making for our customers,” said Corinne Minton-Package, senior vice president of Systems and Technology at Vectrus.
Vectrus’ Converged Environment expands the company’s existing Converged Infrastructure offering to create and implement technology solutions and operational efficiencies by integrating all aspects of physical and digital infrastructure.
As a result, the Converged Environment improves performance and reduces costs across communications, assets, logistics, supply chains, acquisition, cyber as well as physical security, facilities and operational processes.
“Unlike traditional solutions, the Vectrus approach exists at the intersection of technology, security, and assets, making us uniquely positioned to unlock the benefits that come with integration,” Minton-Package explained.
The Converged Environment approach has been integrated for the Naval Base Coronado in San Diego. Vectrus has implemented technology solutions and applications for a “warehouse of the future” as the prime contractor for the base. The smart warehouse will improve efficiency, security, and safety of material across supply handling, management, storage and distribution.
“We are proud of this investment and are committed to developing tailored solutions to meet the DoD’s modernization objectives through the deployment of Vectrus Converged Environments,” Minton-Package added.
Aug 11, 2021
Recent contract wins and acquisitions helped Vectrus make a big comeback from the COVID-19 pandemic in the second quarter with surging revenue and profits, the Colorado Springs-based defense contractor said Tuesday.
Revenue during the April-to-June quarter jumped more than 40% from a year ago to nearly $471 million. Profits soared more than 14 times during the same period from $1.11 million, or 9 cents a share, to $15.9 million, or $1.35 a share. A major adjustment to a defense contract in Europe and delays in starting contracts triggered by the pandemic slashed the company’s second-quarter earnings last year.
“Our business continues to advance on all fronts to deliver solid results in the second quarter,” Vectrus CEO Chuck Prow said Tuesday on a conference call with investors and stock analysts.
Much of the growth came from a $242 million Navy contract Vectrus won during the quarter to provide supplies and services worldwide to support humanitarian and disaster relief, military exercises and operations in the Middle East. The company also received a work order to support a major military exercise just completed in Asia. The contract wins helped to boost the company’s contract backlog by $400 million from the previous quarter to $4.9 billion.
The rest of the revenue gain resulted from two acquisitions Vectrus completed late last year. Vectrus bought HHB Systems, a Virginia-based defense contractor specializing in systems engineering and technical assistance, and Zenetex, another Virginia defense contractor that specializes in providing management and technology services for federal and defense industry clients.
Revenue for the first half of the year was up 31.6% from the same period last year to $904.8 million, while earnings nearly tripled from $9.78 million, or 83 cents a share, to nearly $28 million, or $2.37 a share.
Based on the first-half gains, Vectrus boosted its annual revenue and earnings forecast. The company boosted its revenue forecast by $65 million to between $1.75 billion and $1.78 billion and its profit forecast by 21 cents to between $3.78 and $4.18 a share. Vectrus earned $3.14 a share last year on revenue of nearly $1.4 billion.
By Wayne Heilman [email protected]
August 10, 2021
