Booz Allen completes Liberty IT acquisition
On June 14, McLean, VA-based Booz Allen Hamilton announced it has completed the acquisition of Liberty IT Solutions, LLC for $725 million. The transaction was previously announced on May 4, 2021.
Headquartered in Herndon, VA, with a national presence including a dedicated Agile Center of Excellence in Melbourne, FL and offices in Exton, PA, Liberty is a leading digital partner driving transformation across the federal IT ecosystem with robust, modern software development capabilities including Agile, DevSecOps and APIs as well as cloud and Low Code / No Code (LCNC) solutions implementation. Its expertise complements Booz Allen’s already powerful digital transformation portfolio, accelerates Booz Allen’s digital transformation growth, and enhances the firm’s ability to deliver end-to-end digital solutions for federal customers to help them achieve exceptionally efficient, effective transformational change.
“This acquisition is directly on strategy and will fuel our growth,” said Horacio Rozanski, Booz Allen president and chief executive officer. “Booz Allen and Liberty share a passion for people, innovation, and technical excellence. I am pleased to welcome an exceptional team of colleagues with an equal commitment to helping clients use disruptive technology to transform and advance missions.”
Liberty will operate as a Booz Allen company, integrated with the firm’s Civilian Services Group led by executive vice president Kristine Martin Anderson. Booz Allen’s Civilian Services team has been at the forefront of digital transformation for federal clients, partnering with them to solve problems at scale and innovate on critical issues across the full breadth of civil government, including healthcare, homeland security, financial services, justice, law enforcement, energy, transportation, and benefits delivery.
“Today’s federal agencies have wide-ranging and rapidly evolving modernization needs,” said Anderson. “Joined with Booz Allen’s talented workforce and secure, modern digital solutions, Liberty’s leading capabilities and more than 600 solution architects, engineers, and other highly skilled professionals will help us deliver even more innovative technology, bold thinking, and advanced transformation solutions in support of the nation’s ambitious domestic agenda.”
“We are excited for Liberty’s next chapter as a Booz Allen company and the new opportunities this brings for our people and our clients,” said Scott Hanawalt, president of Liberty. “We look forward to continuing to serve clients with integrity and ingenuity as we work together to accelerate transformation across the federal market, bringing our unique insights, expertise, and culture to bear as we join Booz Allen in empowering people to change the world.”
For the transaction, cash consideration of approximately $725 million was funded through a combination of excess cash on hand and net proceeds from Booz Allen’s $500 million debt offering announced on June 7, 2021. The transaction is expected to be immediately accretive to Booz Allen’s revenue growth rate, adjusted EBITDA margin, and adjusted diluted earnings per share.
Source: Booz Allen