Maximus to Buy Agile Defense for $660M Cash, Adding Defense and National Security Capabilities
MMS sits 20% above its 52-week low of $51.036.
Summary
Maximus agreed to acquire Agile Defense for $660 million in cash plus up to $50 million in earnouts, adding cleared defense and national security work. Pro forma net leverage rises to 2.2x-2.3x, still within the 2x-3x target, with closing expected in fiscal Q1 2027.
Key Events · M&A and Partnerships · MMS
-
Maximus to Acquire Agile Defense for $660M
A definitive equity purchase agreement signed October 19, 2026 covers all equity of Agile Defense, LLC and affiliates from Arclight Equity Holdings, payable in cash at closing and subject to working capital and indebtedness adjustments.
-
Up to $50M Contingent Earnout
Sellers receive additional payments if Agile Defense revenue exceeds $240 million in the 12 months after closing, capped at $50 million; $23 million of the price sits in escrow ($15 million indemnity, $8 million adjustment).
-
Leverage Rises but Stays in Target Range
Preliminary net debt to EBITDA was 1.7x for the quarter ended September 30, 2026, rising to 2.2x-2.3x including the acquisition, within the company's 2x-3x target.
-
Closing Expected in Fiscal Q1 2027
The deal requires HSR clearance plus DCSA and ITAR national security notifications; outside date is December 18, 2026, extendable 45 days if antitrust or governmental order conditions remain open.
Analysis · MMS · Trade & Services
Maximus is paying $660 million in cash for Agile Defense, a cybersecurity and AI contractor with roughly 1,100 cleared personnel serving more than 50 federal agencies. The deal pushes Maximus deeper into defense and national security work, where spending growth is expected to be more durable than in the company's core health and human services programs. It is funded with debt: pro forma net leverage rises to 2.2x-2.3x from 1.7x, still inside the 2x-3x target. The purchase price can rise by up to $50 million if Agile hits revenue milestones in the first year, and $23 million sits in escrow against indemnity and working capital claims. Closing is expected in fiscal Q1 2027 and must clear HSR and DCSA/ITAR national security reviews, with a December 18, 2026 outside date. The risk is integration and the added leverage against a backdrop of a 5% revenue decline last quarter and a federal contract modification that cuts EPS by about $0.35 per quarter starting Q4.
How filings like this one have moved
In the 30 days to Oct 20, 2026, 37.4% of the 952 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.87%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, MMS was trading at $61.33 on NYSE in the Trade & Services sector, with a market capitalization of approximately $3.2B. The 52-week trading range was $51.04 to $100.00. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.