​M&A: Booz Allen Acquires CIO-SP3 Prime, Aquilent

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Booz Allen Hamilton (BAH) to Acquire eGov Holdings in $250M Deal – November 29, 2016, StreetInsider

Booz Allen Hamilton (NYSE: BAH) 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…

G2X TAKE: Identified by G2Xchange as one of the Top 5 Most Attractive Fed Health IT M&A Targets this time last year, the acquisition of this mid-tier digital strategy and technology consultancy makes for some big news. More aggressive firms will work to take advantage of the inherent opportunities that exist with any M&A deal.

Led by Danielle Cogar and David Fout, Aquilent managed to carve a niche in the burgeoning digital strategy, technology, and cloud markets by capturing a number of strategic enterprise contracts. This is especially true at HHS where Aquilent was able to parlay an enterprise HHS BPA into wins across dozens of agencies and institutes at HHS and CMS in support of large digital health efforts, such as healthcare.gov.

While many firms will naturally focus on identifying talent that may be open to new opportunity post acquisition, the bigger opportunity here lies in the now duplicative and coveted prime spot held on the CIO-SP3 vehicle. We suspect there will be more than a few firms in discussions with Booz Allen about how they can help take that vehicle off their hands.

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