Dynetics announced Tuesday it has entered into an agreement to be acquired by Leidos for $1.65 billion in cash.

A statement from Dynetics, which is headquartered in Huntsville, describes Leidos as "a Fortune 500 information technology, engineering, and science solutions and services leader working to solve the world’s toughest challenges in the defense, intelligence, homeland security, civil, and health markets."

Leidos is headquartered in Reston, Virginia. Dynetics says while the sale is not final, the two companies have reached a definitive agreement to proceed and they anticipate closing in early 2020.

"Dynetics is an innovative company with a talented team that will deepen our identity as a national security systems provider and enhance our platform to deliver sustainable, profitable growth," said Leidos Chairman and CEO Roger Krone. "The addition of Dynetics will significantly increase our capabilities for rapid prototyping and agile system integration and production, enhancing our overall offerings and services to customers. Through the LInC, Leidos develops groundbreaking solutions leveraging a wide range of technologies. Dynetics will further accelerate those efforts, including in hypersonics, space solutions, autonomy and advanced sensors. With Dynetics, we will build on our existing relationships with key U.S. Government customers, particularly in strategically important Huntsville, Alabama. This transaction is projected to be immediately accretive to revenue growth, EBITDA margins, and non-GAAP EPS upon closing."

"Dynetics is an innovator and an industry leader," said David King, Dynetics chief executive officer. "This transaction will enhance and accelerate our ability to serve customers and ensure their future success. As we have continuously stated, Dynetics is more than just a company, we are a true partner, and today's announcement will allow us to play an even bigger role serving and meeting the evolving needs of important U.S. Government customers. We are excited to be a part of the Leidos team."

You can find more information from Dynetics here. Leidos has posted a news release here.