Acquisition of Vangent to bring General Dynamics to Coralville.

One of the world's largest defense companies will arrive in the Corridor with the acquistion of Vangent Holding Corp.

General Dynamics has agreed to buy Vangent Holding in a $960 million all-cash deal announced Tuesday, August 16. Vangent Holding is the parent company of Vangent Inc., a provider of health care information technology and business systems with operations at 2450 Oakdale Blvd., Coralville.

Vangent will become part of General Dynamics Information Technology, which provides health care information technology systems and solutions to federal, commercial and military customers. The deal is expected to close by Oct. 1.

In recent years, the Coralville center has handled incoming customer service calls for student aid programs for the United States Department of Education and Medicare and Medicaid for the United States Department of Health and Human Services, among other programs.

Vangent has more than 7,500 employees. The number based in Coralville was not immediately available.

No plans for changes in employment levels or facility alignment has been made as a result of the merger, accordinig to Rob Doolittle, vice president of communications for General Dynamics.

"From General Dynamics' perspective, we see this as a growth opportunity," Doolittle said. With the additional scope and scale of Vangent, he said General Dynamics information technology healthcare operations will be able to compete effectively on just about any kind of government healthcare IT contract.

Iowa City Area Development Group President Joe Raso said the area economic development organization was just learning about the merger. He said ICAD has been contacting Vangent on a regular basis as a client, and will contact General Dynamics at the right time to let them know about the services ICAD offers, and to build a strong relationship.

Pearson PLC operated the business before it was acquired in 2007 by group led by Veritas Capital Fund III for $600 million.

Vangent reported first quarter sales of $175.8 million. In a prepared statement, General Dynamics said the acquisition will add to its earnings beginning in 2012.