Vangent Inc could fetch up to $1 billion in buyout deal

Arlington, Virginia-based IT consulting firm Vangent is eyeing a buyout deal that could cost up to $1 billion, according to insiders familiar with the proposal.

Reuters is reporting that Bank of America Merrill Lynch and Goldman Sachs Group have started the sales process for the agency, which is owned by the private equity firm Veritas Capital.

The news agency said that Veritas is hoping to get between $1.1 billion to $1.2 billion in the deal, although it's still unclear if buyers will be willing to bid that high.

Vangent is a global information management and strategic business consulting firm with clients that include a number of government agencies including the department of defense, justice, state and Centers for Medicare and Medicaid, as well as the commercial health industry. Its services include the design of clinical electronic healthcare systems and pension benefits reporting services.

The agency currently employs more than 7,000 people worldwide and generates approximately $760 million in revenue annually.

The potential buyout is reportedly drawing interest from a number of private equity firms and strategic buyers.