Jul 6, 2022
Vectrus has closed its transaction to merge with fellow defense and aerospace contractor the Vertex Company, together forming the new company V2X Inc.
The business combination is intended to yield an enterprise offering wide-ranging national security and technology modernization services to defense, civilian and international customers, the newly formed organization said Tuesday.
“We created a company with the scale and ability to compete for large integrated business opportunities by providing full life-cycle support across the converged environment,” commented Chuck Prow, the former CEO of Vectrus and eight-time Wash100 Award winner who is now CEO of V2X.
The converged environment Prow mentions is an element carried over from Vectrus that was introduced earlier this year. The concept aims to offer a unified physical and digital approach to address U.S. Department of Defense technological and operational needs. V2X’s team will perform services in operations and logistics, aerospace, training and technology.
The 11-member board of directors of V2X are populated by six Vectrus-appointed figures and five Vertex-assigned executives. Melvin Parker, Eric Pillmore, Chuck Prow, Stephen Waechter, Phillip Widman and Chairman Mary Howell are Vectrus’ instatements, while Vertex elected Ed Boyington, Dino Cusumano, Lee Evangelakos, Joel Rotroff and Neil Snyder.
V2X will now inherit responsibilities such as the $250 million task order from the U.S. Army awarded to Vectrus for logistics support in February. Work under the contract will potentially extend through December 2026.
As a result of the merger’s finalization, prior Vertex stockholders now retain about 62 percent of V2X and past Vectrus investors own approximately 38 percent of the new company’s common stock. The transaction’s close moved 18.6 million shares of Vectrus common stock to Vertex shareholders. V2X’s stock will be traded on the New York Stock Exchange under the ticker symbol “VVX,” effective July 8.
Vectrus was financially advised by Goldman Sachs & Co., with additional advisement by Ernst & Young and Wolf Den Associates, while Vertex received financial appraisal from RBC Capital Markets, LLC and Evercore, with additional advisement from Fairmont Consulting Group.
Jun 30, 2022
Defense contractor Vectrus Inc. and government services company Vertex Inc. are moving forward with a $2.1 billion merger that will move the rebranded company’s headquarters to Northern Virginia.
The combined company will be called V2X Inc. and it will trade on the New York Stock Exchange under the symbol “VVX.” V2X is expected to be based in McLean, where Vectrus already has an office at 7901 Jones Branch Drive.
Vectrus, which is currently headquartered in Colorado Springs, Colorado, said Wednesday its shareholders approved the merger transaction, which was first announced in March. Under terms of the deal, shareholders in Madison, Mississippi-headquartered Vertex will own approximately 62% of the combined company, while Vectrus shareholders will own approximately 38%.
Vectrus specializes in logistics, IT maintenance and military base operations. Vertex is focused on aircraft maintenance, systems engineering and training.
Vertex, which was once part of L3 Technologies, is owned by New York private equity firm American Industrial Partners. Vectrus was formerly part of Exelis.
The two contractors posted $3.4 billion in combined revenue last year and employ a total of 14,000 workers across their ranks.
The deal is expected to close in the third quarter.
Jun 17, 2022
Vectrus shareholders have approved a merger with the Vertex Co. in a key step toward creating a new military powerhouse, V2X, to be based out of northern Virginia.
Vectrus, a Colorado Springs-based defense contractor, and Madison, Miss.-based Vertex announced plans for the merger in March. Vectrus shareholders approved the deal in a special meeting Wednesday, according to a news release. The deal is expected to close early in the third quarter.
The transaction will give Vertex shareholders nearly two-thirds ownership of the company and Vectrus shareholders one third, creating one of the nation’s 20 largest defense contractors with 14,000 employees in 300 locations worldwide.
“Today’s (Wednesday’s) overwhelming approval marks a significant step toward completing our merger with Vertex, and creating one of the leading providers of critical mission solutions and support to defense clients globally,” Vectrus CEO Chuck Prow — who will be CEO of the combined company — said in the release. “Vectrus and Vertex — together as V2X — will be better positioned to meet the mission-essential needs of our clients while delivering cost efficiencies, increased security and resiliency, with more strategic use of resources.”
Vectrus employs 8,100 people, mostly at military bases around the world. Once the merger is complete, Colorado Springs office of 200 employees, which focuses on sales, finance and human resources, will stay in place, Vectrus Vice President Michael Smith confirmed Thursday.
Vertex also operates an office near the Colorado Springs Airport that supports a contract the company manages at a radar station in Alaska that feeds data to the North American Aerospace Defense Command (NORAD).
In addition to Prow as CEO, Vectrus Chief Financial Officer Susan Lynch will hold the same post in the combined company and Vectrus board members will hold six of the 11 seats on the combined board, including the chairman’s post. Vertex CEO Ed Boyington will serve on the board and remain with the combined company until retiring after an unspecified transition period. V2X will be based in McLean, Va., where Vectrus already has an office.
Vectrus, which specializes in logistics, information technology maintenance and operating military bases, is slightly larger than Vertex. Vertex specializes in aircraft maintenance, systems engineering and training.
May 12, 2022
Chuck Prow, CEO of Vectrus (NYSE: VEC) and an eight-time Wash100 winner, attributed the 5.2 percent year-over-year growth in the company’s fiscal 2022 first-quarter revenue partly to its continued phase-in work under the U.S. Army’s Logistics Civilian Augmentation Program V.
The Colorado Springs-based government services contractor said sales during the most recent quarter amounted to $456.5 million, compared with $434 million in the same period a year ago.
Prow noted that the company transitioned to full operational status on LOGCAP V efforts at Kwajalein Atoll in the Marshall Islands more than one month ahead of schedule.
“Adjusted EBITDA for the quarter was $18.2 million or 4.0% margin as we work through program efficiencies in the early phases of LOGCAP V implementation,” he added.
In its Q1 financial statement, Vectrus reported it began operations support at Fort Benning in Georgia as part of a $250 million Army task order and entered the final phase of a U.S. Navy project to develop a 5G warehouse application at Naval Base Coronado.
The company expects to report $1.82 billion-$1.86 billion in revenue and $4.57-$4.93 earnings per share for 2022.
May 9, 2022
Susan Lynch is helping guide the company forward following the merger agreement between Vectrus and Vertex on March 7. This merger creates a company with revenues exceeding $3.4 billion, adjusted EBITDA margins of more than 8%, a backlog of greater than $11 billion and over 330 locations.
Lynch also integrated two significant acquisitions in 2021 which resulted in approximately 28% year-over-year revenue growth and 9.5% organic revenue growth — all while implementing a global enterprise resource planning system.
Why Watch
The focus for Lynch and her team in 2022 will be closing the Vectrus/Vertex merger, building one unified team and delivering on the merger’s synergies and plans. The combined company will provide opportunities for greater contract, customer and geographical diversity; broader scale; and more opportunities for employees to grow and succeed.
The combined company will be well positioned to provide its customers with more integrated and comprehensive solutions with significantly improved margins and a backlog that has visibility for at least three years into the future.
“It’s an exciting time to work at Vectrus and to welcome and combine the employees from Vertex with our family at Vectrus,” Lynch said. “As a global leader in mission essential solutions, our cultures and values are similar, and the primary focus of our workforce is making our clients’ missions successful.”
May 5, 2022
Shravy Valet is a technical translator. “I function as the translator between our technical and business development/sales teams, bringing the latest technological solutions to the right clients,” says Valet, director of strategy and innovation for Vectrus.
To accomplish this, she must be aware of cutting-edge solutions, research and development, and have a deep understanding of the challenges Vectrus clients face. “I use my bachelor’s and master’s degrees in engineering, combined with my MBA, to bridge this gap for Vectrus,” she adds.
Recently, Valet worked on a project for the U.S. military to integrate, analyze, and visualize data from various chemical, biological, and radiological sensors and detection systems to detect and alert the military of any imminent threats. Valet’s team worked closely with various competing original equipment manufacturers (OEMs), vendors, subcontractors, and government and military personnel to deliver this complex system successfully.
With the company since 2016, Valet started with SENTEL, which Vectrus acquired in 2018. As a bio-medical engineering major, she was attracted to working in the defense biotech industry. And she stayed for the opportunities for advancement and leadership as an engineer.
“Often companies can silo you into a technical track, but, at Vectrus, my leadership championed and advocated for my growth as a leader, including being supportive of me pursuing my MBA as I worked full-time,” she shares.
A leading provider of global service solutions, Vectrus is head-quartered in Colorado Springs, CO. What makes the company a great place to work, according to Valet, is that good ideas are given credence, no matter where in the organization they originate.
“It doesn’t matter if you’re an entry-level engineer or a subject matter expert with 30 years of experience. If your idea has merit, then it’ll be heard by senior leadership. Such a meritocracy encourages everyone to advocate for the best ideas boldly, enabling us to deliver the best final product to our clients,” she elaborates.
When searching for your first or next position, Valet advises casting a wide net. “Early on in your career, it’s just as valuable to learn what career path might not be right for you as it is to figure out your ideal career path,” she advises.
She also recommends seeking a position where management and leadership support their employees and advocate for them and their career growth goals. “The culture and people at the company you work for are just as important for being happy in a position as the technical work itself.”
To succeed in this field, young woman engineers should practice communicating and failing. “Being comfortable articulating complex technical ideas succinctly to a group is a valuable skill set and key to being a successful engineer. Similarly, although slightly less straightforward, it’s important to practice failing. It’s important not to let the pursuit of perfection hinder progress,” believes Valet.
“It’s beneficial to shed the fear of failure as early as possible in your career as failing is an excel-lent way to improve and innovate as an engineer,” she adds.
