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.