Neuberger Berman Capital Solutions Exits Minority Investment in ENTRUST Solutions Group Through Sale to Leidos for $2.4 Billion

Rhea-AI Summary

Neuberger Berman Capital Solutions exited its minority investment in ENTRUST Solutions Group through a sale to Leidos (NYSE:LDOS) for approximately $2.4 billion. Neuberger originally acquired its minority stake in August 2023 and held the investment across client portfolios managed by Neuberger.

ENTRUST, headquartered in Lisle, Illinois, employs over 3,100 professionals across more than 40 locations and provides consulting, design, and engineering services to U.S. utility and infrastructure customers. The transaction, which involved multiple financial, legal, and accounting advisors on both sides, is subject to customary closing conditions and regulatory approvals and is expected to close in Q2 2026.

Positive

• Sale value of approximately $2.4 billion
• Neuberger realizes exit after Aug 2023 minority investment
• ENTRUST scale: over 3,100 professionals across 40+ locations

Negative

• Transaction is subject to regulatory approvals and customary closing conditions
• Expected close in Q2 2026 leaves multi-quarter execution risk

Key Figures

Entrust purchase price: $2,400,000,000 Bridge credit facility: $1.4 billion SOFR margin range: 1.00%–1.50% +5 more

8 metrics

Entrust purchase price $2,400,000,000 Base cash purchase price per 8-K Stock Purchase Agreement

Bridge credit facility $1.4 billion Senior unsecured 364-day bridge facility commitment from Citigroup

SOFR margin range 1.00%–1.50% Ratings-based margin range for SOFR borrowings on bridge facility

Initial SOFR margin 1.25% Initial applicable margin for SOFR borrowings on bridge facility

Deal value (press release) $2.4 billion Approximate ENTRUST sale value to Leidos cited in article

Entrust professionals over 3,100 Number of ENTRUST professionals across the U.S.

Entrust locations 40+ locations ENTRUST office and work locations across the country

Outside date August 14, 2026 Date after which Entrust acquisition agreement may be terminated

Market Reality Check

Price: $187.15 Vol: Volume 839,568 shares is ...

normal vol

$187.15 Last Close

Volume Volume 839,568 shares is slightly below the 20-day average of 887,797, suggesting no outsized trading response ahead of this deal news. normal

Technical Shares at $189.50 are trading above the 200-day MA of $173.54, keeping LDOS in a longer-term uptrend despite a -0.9% daily move.

Peers on Argus

LDOS slipped -0.9% while peers were mixed: GIB -0.9%, CDW +1.12%, BR +0.51%, WIT...

LDOS slipped -0.9% while peers were mixed: GIB -0.9%, CDW +1.12%, BR +0.51%, WIT +1.16%, CTSH +0.23%. With no peers in the momentum scanner and moves in both directions, trading appears more company-specific than sector-driven.

Historical Context

5 past events · Latest: Jan 22 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 22	AI partnership	Positive	+0.7%	Announced partnership to deploy OpenAI models in federal workflows.
Jan 13	Earnings call scheduled	Positive	+0.2%	Set date for Q4 and full-year 2025 earnings conference call.
Dec 15	Leadership/AI hire	Positive	-2.0%	Named new chief technology officer with extensive AI background.
Dec 08	Security collaboration	Positive	-0.6%	Collaborated with CargoSeer to add AI trade-analysis to inspection platform.
Dec 04	Contract award	Positive	-2.9%	Won three-year, <b>$127 million</b> contract to run Hawai'i Energy program.

Pattern Detected

Recent LDOS news has often been positive, but price reactions skew slightly negative, indicating a tendency for some good news to be met with selling.

Recent Company History

Over the last few months, LDOS has focused on AI partnerships and infrastructure contracts. An AI collaboration with OpenAI on Jan 22, 2026 saw a modest +0.69% move, while scheduling the Q4 2025 earnings call on Jan 13, 2026 coincided with a small gain. Earlier AI leadership and border security collaborations, plus a $127 million Hawai'i Energy contract, drew negative reactions. Today’s Entrust acquisition continues the theme of infrastructure and energy-focused expansion.

Market Pulse Summary

This announcement highlights LDOS’ plan to acquire Entrust for about $2.4 billion, deepening its pre...

Analysis

This announcement highlights LDOS’ plan to acquire Entrust for about $2.4 billion, deepening its presence in utility and infrastructure engineering. The related 8-K details a $1.4 billion bridge facility and standard conditions, including antitrust clearance and an outside date of August 14, 2026. In context of recent AI and infrastructure initiatives, key items to watch include regulatory approvals, final financing structure, and integration progress once the transaction closes.

AI-generated analysis. Not financial advice.

NEW YORK, Jan. 27, 2026 /PRNewswire/ -- Neuberger Berman Capital Solutions, along with funds managed by Neuberger Berman Private Markets (collectively, "Neuberger"), announced the exit of its minority investment in ENTRUST Solutions Group ("ENTRUST" or the "Company") through a sale to Leidos (NYSE:LDOS) for approximately $2.4 billion. Neuberger initially acquired a significant minority stake in ENTRUST in August 2023, alongside existing investor Kohlberg & Company.

The investment was held by several client portfolios managed by Neuberger.

Headquartered in Lisle, Illinois, ENTRUST is a leading consulting and engineering services platform serving the utility and infrastructure end markets. Working from 40+ locations across the country, ENTRUST's over 3,100 professionals provide consulting, design, and engineering services to a broad base of customers, supporting the maintenance and upgrade of aging utility infrastructure across the United States.

"We'd like to congratulate ENTRUST on their upcoming partnership with Leidos. It's been a privilege to partner with Adam and team over the past several years, as they've continued to build a business positioned for long-term success," said J.T. Munch, Managing Director, Neuberger Berman Capital Solutions. "We are grateful for their hard work and dedication and are excited to watch as ENTRUST's next chapter unfolds."

"Neuberger has been an exceptional partner to the ENTRUST team," said Adam Biggam, ENTRUST CEO. "Their support has been vital in advancing key strategic investments and assembling a best‑in‑class team that positions us to strengthen North America's critical power infrastructure well into the future."

Leidos retained Citi as financial advisor, Davis Polk & Wardwell LLP as legal advisor and PwC as accounting advisor in connection with the transaction.

ENTRUST, Kohlberg, and Neuberger retained Houlihan Lokey and Perella Weinberg Partners as financial advisors, Ropes & Gray as legal advisor, and KPMG as accounting advisor in connection with the transaction.

The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close in the second quarter of 2026.

About Neuberger Berman Private Markets

Neuberger Berman Private Markets is a division of Neuberger Berman and has been an active and successful private markets investor since 1987. Neuberger Berman Private Markets invests across strategies, asset classes, and geographies for a large number of sophisticated and renowned institutions and individuals globally. As of September 30, 2025, Neuberger Berman Private Markets manages over $150 billion of investor commitments across primaries, co-investments, secondaries, private credit, and specialty strategies. Neuberger Berman Private Markets has an experienced and diverse team of over 470 professionals with a global presence in 16 offices globally.

Neuberger Berman Capital Solutions, a part of Neuberger Berman Private Markets, provides bespoke capital solutions to private equity-owned companies, enabling sponsors and management teams to achieve long-term strategic objectives. Neuberger Berman Capital Solutions manages ~$12 billion in AUM and has made investments in over 90 companies across its three funds. Over time, the global team has evolved to work in a cohesive and integrated manner across GP-centric strategies. For more information, please visit www.nbcapitalsolutions.com.

About ENTRUST Solutions Group

ENTRUST is a leading consulting and engineering services platform serving the utility and infrastructure end markets with 3,100+ professionals working from 40+ locations across North America. The company provides consulting, design, and engineering services to a broad base of customers, protecting North America's critical power infrastructure through a highly technical portfolio of essential, cutting-edge solutions. Over the last six years, ENTRUST has markedly expanded its geographic reach, service capabilities, and customer base through a combination of organic growth, strategic acquisitions, and scaled workforce and operational infrastructure.

Media Contacts:

Neuberger: Soogyung Jordan: Soogyung.jordan@nb.com

Entrust: Ali Preston: apreston@entrustsol.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/neuberger-berman-capital-solutions-exits-minority-investment-in-entrust-solutions-group-through-sale-to-leidos-for-2-4-billion-302671639.html

SOURCE Neuberger Berman

FAQ

What did Neuberger announce about its ENTRUST stake and the sale to Leidos (LDOS)?

Neuberger announced it sold its minority stake in ENTRUST to Leidos (NYSE:LDOS) for approximately $2.4 billion.

When is the Leidos acquisition of ENTRUST expected to close for LDOS shareholders?

The transaction is expected to close in Q2 2026, subject to customary closing conditions and regulatory approvals.

How large is ENTRUST and what services does it provide relevant to LDOS?

ENTRUST is headquartered in Lisle, Illinois, with over 3,100 professionals in 40+ locations, offering consulting, design, and engineering services to utility and infrastructure customers.

Which advisors worked on the ENTRUST sale to Leidos (LDOS)?

Leidos retained Citi, Davis Polk & Wardwell LLP, and PwC; ENTRUST, Kohlberg, and Neuberger retained Houlihan Lokey, Perella Weinberg Partners, Ropes & Gray, and KPMG.

When did Neuberger originally acquire its minority stake in ENTRUST?

Neuberger initially acquired a significant minority stake in August 2023.