Booz Allen Hamilton To Acquire Defense Engineering Services Division Of ARINC

| October 16, 2012
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Booz Allen HamiltonBooz Allen Hamilton Holding Corporation (NYSE:BAH), the parent company of consulting firm Booz Allen Hamilton, today announced it has entered into a definitive agreement to acquire the Defense Systems Engineering & Support (DSES) division of ARINC, based in Annapolis, MD with offices across the United States.

DSES brings strong capabilities in advanced aviation and maritime engineering, advanced weapons modernization and sustainment, and advanced systems engineering and integration to complement Booz Allen’s existing service base, which spans engineering and operations, technology, analytics, and strategy and organization. DSES is well-positioned in the growing command, control, communications, computing, intelligence, surveillance, and reconnaissance (C4ISR) and engineering services/prototyping segments of the defense market, and Booz Allen sees opportunities for DSES’ capabilities in adjacent intelligence, law enforcement, homeland security, and international systems sectors.

“DSES is a good strategic fit that builds on Booz Allen’s existing engineering capabilities and defense market position and offers opportunities for us to bring deeper and broader expertise to our clients in areas where we see a number of compelling opportunities,” said Ralph W. Shrader, Booz Allen’s Chairman, Chief Executive Officer, and President. “DSES has outstanding people, strong client relationships, and a focus on client mission that mirrors Booz Allen’s values. It also has a proven track record of quality delivery and profitability.”

“The employees of our Defense Systems Engineering & Support division have served ARINC and its customers very well.  I thank them for their dedication to us, and I’m proud they will be joining a firm of Booz Allen’s caliber which has been recognized by Fortune magazine and others as a Best Company to Work For,” said John Belcher, Chairman & CEO of ARINC.  “Booz Allen has the stature, scale, and business base to provide rewarding career opportunities for DSES employees.”

Approximately 1,000 employees from various locations of ARINC, many of which align with Booz Allen’s existing locations, are expected to join Booz Allen as a result of the acquisition. The transaction is expected to close later this year, subject to customary closing conditions, including the required waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.  At closing, Booz Allen will pay approximately $154 million in cash to ARINC Incorporated. Booz Allen expects the transaction, once completed, to be accretive to its earnings in fiscal 2014, which begins April 1, 2013.

Source: Booz Allen Hamilton
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