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.