Vencore Closes In on IPO

Vencore Holding has registered an amended S-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). No pricing details were mentioned in the filing, but the offering is valued up to $250 million. The company intends to list its shares on the New York Stock Exchange under the symbol VNCR.

The underwriters for the offering are Goldman Sachs and Wells Fargo.

This company is a leading provider of mission-critical, innovation-driven services and solutions to U.S. government customers. The foundation of its business is the application of systems engineering and integration, cybersecurity, big data analytics and applied research on an enterprise-wide scale to assist U.S. government customers in solving their most complex information-related challenges.

Vencore is a leader in the architecture and integration of highly engineered, mission-critical information solutions across the U.S. government, and it provides enterprise-level support to multiple governmental programs that manage, collect, analyze and disseminate critical mission data to national security agencies and their customers.

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The company maintains industry-leading expertise in providing comprehensive solutions throughout the life of multi-billion-dollar systems that support the core missions of the U.S. Intelligence Community and other U.S. government agency customers. Its services and solutions span the entire lifecycle of programs, encompassing system definition, architecture, agile solutions development, test and integration, deployment and operations.

In the filing, the company said:

We apply our cyber, analytical and engineering expertise to anticipate, identify and resolve our customers’ most demanding information-related challenges, including the effective management and integration of large and complex government systems, the efficient collection and analysis of large quantities of critical data, the migration of applications and data to the cloud and the implementation of effective cybersecurity measures to successfully detect, prevent and mitigate cyber-attacks.

For the year ended December 31, 2016, Vencore generated revenues of $1.2 billion. Its industry-leading re-compete and new business award rates, significant prime contractor mix and $2.5 billion backlog provide it with near-term revenue and earnings visibility.

The company intends to use the net proceeds from this offering to repay indebtedness, with the remaining going toward working capital and general corporate purposes.

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