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SAIC’s stock is down since it revealed deal to buy Engility. Here’s how Tony Moraco is handling it.

Science Application International Corp. CEO Tony Moraco says the challenging corporate integration work with Chantilly-based Engility Corp. is progressing nicely and the $2.5 billion all-stock transaction is still on track to close by the end of January.

But Moraco concedes he has two areas of concern to mitigate, both of which are tied to the risks involved with big-ticket, high-profile corporate integration and are reflected in the company’s stock price.

SAIC (NYSE: SAIC) shares opened at $87.64 on Sept. 10, the day the deal was announced, and closed Tuesday at $75.46, down almost 10 percent. SAIC stock has been down as much as 15 percent since the union was unveiled, so Moraco — as he detailed Tuesday in an interview at the annual AUSA convention in D.C. — is assuring the investment community that shifting resources internally to handle the integration won’t negatively impact either company’s ability to win new business and build up its pipeline.

“We believe that in…

Read the full story from the Washington Business Journal.



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