“Science Applications International Corp. (NYSE: SAIC) announced today that it has entered into a definitive agreement to acquire Halfaker and Associates, LLC, a leading federal health technology solutions provider, for $250 million, growing the company’s digital transformation portfolio.”
“Halfaker is headquartered in Arlington, Virginia, with an Agile Delivery Center in Clearwater, Florida. The company is known for its ability to create, modernize, integrate, and secure mission critical systems for federal government customers. Halfaker has a strong culture of service, rooted in the desire to make a difference in the lives of its community, veterans, and wounded warriors.”
“This acquisition reinforces SAIC’s commitment to supporting the government healthcare mission, including our strong support for the health and wellbeing of veterans. It further accelerates SAIC’s profitable growth, brings key diverse talent, and offers access to strategic customers and contract vehicles within health IT for the DOD and federal government,” said SAIC CEO Nazzic Keene. “Halfaker is a strong cultural fit with mission-focused talent, and enhances our ability to support our customers’ digital transformation needs and positions SAIC to be an innovative technology solutions provider into the future.”
“I am excited to embark on this next chapter of Halfaker’s mission to continue to serve,” said Halfaker President and CEO Dawn Halfaker. “The alignment of SAIC’s culture and values with this important mission has been critical in making the decision to join forces and successfully bolster the services we provide our customers with even greater digital transformation capacity and scalability. This acquisition enables our delivery teams to maintain our customer-centric focus while exponentially increasing our ability to provide the technical depth and top technical talent needed to meet the government’s most pressing challenges.”
“Strategic Alignment to Digital Transformation
Halfaker brings advanced end-to-end digital solutions that further transform and empower customer decision-making through modernization and optimization. Halfaker is an established, leading provider of digital services, data analytics, cybersecurity, and cloud solutions to the Department of Veterans Affairs (VA), Department of Defense, Department of Health and Human Services, the Centers for Medicare and Medicaid services, and other notable customers. Halfaker is also a top 5 IT provider by awarded task orders on the VA’s Transformation Twenty-One Total Technology Next Generation (T4NG) acquisition program.”
“Together, SAIC and Halfaker’s solutions strengthen the company’s robust digital transformation portfolio in areas such as DevSecOps, digital engineering, automation, and process improvement.”
SAIC expects the transaction to be accretive to its revenue growth rate, adjusted diluted earnings per share, and free cash flow in fiscal year 2022. SAIC expects to fund the $250 million cash transaction through a combination of cash on hand and incremental debt.
The transaction is expected to close by the end of SAIC’s second quarter of fiscal year 2022, ending July 30, 2021, subject to customary closing conditions….” Read the full press release here.
Source: SAIC to Acquire Federal Health IT Company Halfaker and Associates, June 3, 2021. SAIC.
Halfaker also announced the news with Halfaker CEO and President Dawn Halfaker noting: “I am excited to embark on this next chapter of Halfaker’s mission to continue to serve,” said Halfaker President and CEO Dawn Halfaker. “The alignment of SAIC’s culture and values with this important mission has been critical in making the decision to join forces and successfully bolster the services we provide our customers with even greater digital transformation capacity and scalability. This acquisition enables our delivery teams to maintain our customer-centric focus while exponentially increasing our ability to provide the technical depth and top technical talent needed to meet the government’s most pressing challenges.” Read more here.
Source: Halfaker, June 3, 2021.
G2X TAKE: This Fortune 500® technology integrator driving our nation’s technology transformation, offering high-end solutions in engineering, digital, artificial intelligence, and mission solutions, has entered into an agreement to acquire this leading provider of digital services, data analytics, cybersecurity, and cloud solutions to HHS, CMS and VA, and a top 5 IT provider by awarded task orders on VA T4NG.
In posting the news Vishal Tulsian, Senior Vice President Health, State and Local and Federal financial at SAIC noted: “With Halfaker and Associates, LLC, #SAIC will further drive #digitaltransformation by growing its presence among leading federal #publichealth agencies and the US Dept. of Veteran Affairs expanding our public #health portfolio.” See the post here.
This article discussing the acquisition notes: “… both the VA and HHS are in the top three agencies in terms of IT spend in President Biden’s fiscal year 2022 budget request, which calls for $15.45 billion in combined spending, and both are embracing modernization efforts within their enterprise networks.”
“… the acquisition strengthens SAIC’s VA contract portfolio, will help scale up Halfaker’s technology capabilities in the Department of Health and Human Services and makes both entities a stronger combined player in the Defense Health Agency. ” Read more here.
Source: SAIC to buy Arlington firm for $250M, expand its health IT business – By Carten Cordell, June 3, 2021. Washington Business Journal.
- Halfaker brings extensive perspective and past performance with VA to include a 5-year Program Integrity Tool DevOps task award; a $189M VA Enterprise Services Integrated Platform (ESIP) Support task; an $88M VA Electronic Data Interchange (EDI) Transactions Application Suite (TAS) support task; a $244M VA Veteran Signals (VSignals) task award; and a $164M VA Financial Service Center (FSC) IT Service task award.
- Halfaker has made several key personnel investments over the course of the past few years to position them for the long term, to include adding former MHS EHR Acquisition Leader, Jessica Denman as Executive Vice President of Health Operations; Ken Georgi as Chief Operating Officer; well-known Federal Health Industry leader Tony Meyer as Vice President of Business Development; and veteran strategy and growth leader Jerry Ambrosh as Chief Strategy & Growth Officer.
- With a senior leadership team in place who bring a proven track record of winning, and a Prime position on nearly every major Federal Health contract vehicle (CMS SPARC, CIO-SP3 SB, VETS 2, etc.), Halfaker has been one of most well-positioned firms in the Federal Health market over the last few years.
- Both SAIC and Halfaker were named to the list of the NXT UP firms poised to make big waves in the Federal sector in 2020 and for years to come and the VA Profile program Halfaker supports was recently named as one of the FHIT 2020 Disruptive Tech Awardees.
- We should note that Halfaker COO Ken Georgi was recognized among the 2021 FedHealthIT100. Halfaker President and CEO Dawn Halfaker, as well as SAIC VP of Health Civilian Markets, Diana Ceban, were recently recognized among the inaugural FedHealthIT100 Hall of Fame Inductees.
- This is just the latest on the M&A front for SAIC following its acquisition of Unisys Federal for $1.2 Billion; and the $2.5B acquisition of CIO-SP3, OASIS, and Alliant 2 Prime Engility in 2018 , who brought with them a significant set of past performance in support of FDA and numerous Federal Health agencies.
- SAIC has also made a number of strategic hires over the past year or so to include recruiting Dee Dee Helfenstein as Executive Vice President, Chief Strategic Growth Officer; Shannon Dillon to serve as a Business Development Director driving HHS Growth; tapping Michael Scruggs to be Senior VP of Artificial Intelligence; and the recent addition of VA Telehealth growth lead Stephanie Marsden Bidstrup as VP for Strategic BD.
Included below is a snapshot of Prime obligations for Halfaker across the Federal sector.
Included below is a snapshot of Prime obligations for SAIC across the Federal sector.