Private Equity Firm Carlyle In Advanced Talks to Buy Defense Contractor ManTech For $4B: Report

U.S. defense contractor ManTech International Corp (NASDAQ: MANT) is in advanced talks to be bought by private equity firm Carlyle Group Inc. (NASDAQ: CG), a Bloomberg report said on Sunday.

The deal could value ManTech at about $4 billion and be announced as early as this week, the report said. Bloomberg, however, said talks are ongoing and an agreement hasn't yet been finalized.

ManTech is among the very few stocks that are higher for the year-to-date period. Some of the buoyancy is attributable to a report in February that suggested co-founder George Pedersen is exploring options for his controlling stake, including the sale of the company. When Pedersen retired from the board in late February, the stock gained further on hopes a sale may materialize soon.

Related Link: JPMorgan Upgrades Aerojet Rocketdyne, Raises Price Target By 22%

The report comes against the backdrop of the U.S. government's recommendation for more competition in the defense industry, a Reuters report said. The Biden administration apparently is of the view consolidation would pose a national security threat.

In February, Lockheed Martin Corp (NYSE: LMT) had to scrap its proposed deal to buy Aerojet Rocketdyne Holdings, Inc. (NYSE: AJRD) following an FTC lawsuit, seeking to block the deal.

Price Action: ManTech closed Friday's session up 0.23% to $81.97, according to Benzinga Pro data.

Photo courtesy: ManTech