Kohlberg is selling its consulting and engineering firm, Entrust, to defense contractor Leidos for $2.4 billion. The deal is slated to close in the second quarter of 2026. This acquisition will significantly bolster Leidos's capabilities in the government and infrastructure sectors.

For Leidos, the purchase expands its portfolio of government services, a core business line. For Kohlberg, a private equity firm, the transaction represents a successful exit from an investment in a specialized engineering firm, returning capital to its limited partners.

Investors will watch how Leidos integrates Entrust's workforce and operations. The deal's timing aligns with steady defense and government spending, though regulatory approval remains a standard hurdle. The $2.4 billion price tag reflects Entrust's niche value in critical infrastructure.