Booz Allen Hamilton Agrees to Acquire Digital Service Business Aquilent
Laurel, Maryland Company Provides Cloud-Based DevOps & Agile Services
MCLEAN, Va.--(BUSINESS WIRE)--
Booz Allen Hamilton today announced that it has entered into an
agreement to acquire the Laurel, MD-based digital services firm eGov
Holdings, Inc. (d/b/a Aquilent), a premiere architect of .gov solutions
for the Federal government, for whom it deploys cutting-edge digital,
agile, DevOps, and cloud capabilities. Booz Allen has agreed to pay a
purchase price of $250 million in connection with the transaction,
subject to customary purchase price adjustments and customary escrows.
The transaction will bolster Booz Allen's growing technology
capabilities and talent base, particularly its emphasis on building
citizen-focused digital services. Aquilent will be the Laurel, MD hub of
Booz Allen's Digital business. Upon closing of the transaction, eGov
Holdings, Inc. will be a wholly-owned subsidiary of Booz Allen Hamilton
Inc. The transaction is expected to close by December 31, 2016, and is
subject to customary closing conditions.
Aquilent employs approximately 350 professionals who currently provide
digital and cloud services for the U.S. Department of Health and Human
Services, U.S. Postal Service (USPS), U.S. General Services
Administration (GSA), and other federal clients. Aquilent has grown
rapidly, with revenues growing at a 28% compounded annual growth rate
over the last five years. For the remainder of Booz Allen's fiscal year
2017, the transaction is expected to add approximately $30 million to
$35 million of revenue. It is expected to be accretive to Booz Allen
earnings and to add to operating margin in fiscal year 2018.
The acquisition will further expand Booz Allen's ability to blend its
consulting heritage with advanced technical expertise to deliver to
clients cloud, mobile and modular technology services using advanced
methodologies such as Agile, DevOps and open source.
"This acquisition further advances our long-term growth strategy," said
Horacio Rozanski, President and Chief Executive Officer of Booz Allen.
"We are driving sustainable quality growth through client solutions that
blend technical capabilities and talent with our consulting heritage.
This exciting addition to Booz Allen will bolster our capacity to
provide digital transformation to clients."
"Aquilent builds on Booz Allen's existing digital capabilities, bringing
greater expertise to deliver the digital services that citizens expect
the Federal government to provide in a modern, 24/7 environment," said
Greg Wenzel, Executive Vice President for Booz Allen's digital business.
"This acquisition expands our network of digital solutions offerings
with a team of technologists and a modern facility where we can advance
cutting-edge solutions for our clients and take advantage of growth
opportunities in the market for large digital projects."
Aquilent Chief Executive Officer David Fout said, "Joining a firm like
Booz Allen, which aligns so closely with our expertise, offers the
chance to expand into new areas of digital work, expands capabilities
for our clients through the breadth of their relationships, and is a
great opportunity for the people of Aquilent. We look forward to working
together to support existing and future clients."
In 2016, Aquilent was ranked by Inc. as one of the 50 Best Workplaces in
the U.S. and was named the 2015 Cloud Service Provider of the Year by
Booz Allen has continued to invest in technical capabilities in recent
years as part of the firm's long-term growth strategy, called Vision
2020. The firm sees growth opportunities driven by client demand for
technology innovation in areas such as cloud, big data and mobility,
advanced development methodologies and more rapid solution deployments.
The firm's differentiator in digital solutions is its unique ability to
network its broad range of technical capabilities and talent across the
country, delivering a deep understanding of its clients' missions and
sensitivity to the management challenges of organizational adaptation
In recent months, Booz Allen has won several large contracts for digital
A $25 million contract to support the GSA 18F to rapidly deploy tools
and services that are easy to operate, cost efficient and reusable
across government agencies. Under this contract, Booz Allen is
primarily responsible for delivering digital services through agile
development, user-centered design, and DevOps.
A 7-year contract awarded by the USPS Enterprise Mobile Computing
(EMC) IDIQ, which is one of the largest mobility contracts among
public sector applications. This award positions Booz Allen as a
mobile leader and enhances its Digital Solutions brand in the Federal
space. It builds upon its mobile and SD business across markets and
will provide its people with exciting opportunities to work on
cutting-edge mobile projects.
ABOUT BOOZ ALLEN HAMILTON
Booz Allen Hamilton (NYSE: BAH) has been at the forefront of strategy
and technology for more than 100 years. Today, the firm provides
management and technology consulting and engineering services to leading Fortune
500 corporations, governments, and not-for-profits across the globe.
Booz Allen partners with public and private sector clients to solve
their most difficult challenges through a combination of consulting,
analytics, mission operations, technology, systems delivery,
cybersecurity, engineering, and innovation expertise.
With international headquarters in McLean, Virginia, the firm employs
approximately 22,800 people globally, and had revenue of $5.41 billion
for the 12 months ended March 31, 2016. To learn more, visit www.boozallen.com.
Aquilent is a leading solution provider, delivering Digital Services
using DevOps & Agile methodologies in the Cloud, shaping the next
generation of technology for the federal government. With offices in
Laurel, Maryland, Aquilent has designed, developed, or supported over
100 of the nation's most prominent federal websites and digital
services, providing compelling and productive citizen engagement. Bruce
E. Toll and Mark Kozak in partnership with management originally bought
Aquilent out of Commerce One in 2002. Houlihan Lokey served as the
financial advisor to Aquilent.
Certain statements contained in this press release include
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. In some cases, you can
identify forward-looking statements by terminology such as "may,"
"will," "could," "should," "forecasts," "expects," "intends," "plans,"
"anticipates," "projects," "outlook," "believes," "estimates,"
"predicts," "potential," "continue," "preliminary," or the negative of
these terms or other comparable terminology. Although Booz Allen
believes that the expectations reflected in the forward-looking
statements are reasonable, it can provide no assurance these
expectations will prove to have been correct.
Readers are cautioned not to place undue reliance on those
forward-looking statements, which speak only as of the date the
statement was made. Such forward-looking statements are based on current
expectations and assumptions of our management that involve a number of
known and unknown risks, uncertainties and other factors which may cause
actual results or events to be materially different from those expressed
or implied by such forward-looking statements. These factors include,
but are not limited to, the risks associated with our ability to
consummate the acquisition, our ability to realize the anticipated
benefits of the acquisition, and other factors detailed in Booz Allen's
filings with the Securities and Exchange Commission (SEC), including its
Annual Report on Form 10-K, filed with the SEC on May 19, 2016.
All forward-looking statements attributable to Booz Allen or persons
acting on its behalf are expressly qualified in their entirety by the
foregoing cautionary statements. All such statements speak only as of
the date made and, except as required by law, Booz Allen undertakes no
obligation to update or revise publicly any forward-looking statements,
whether as a result of new information, future events or otherwise.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161129005526/en/
Booz Allen Hamilton
James Fisher, 703-377-7595
Curt Riggle, 703-377-5332
Source: Booz Allen Hamilton
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