Booz Allen Hamilton (NYSE:BAH) has agreed to acquire ARINC Inc.’s defense systems engineering and support division, ARINC announced Tuesday.
Booz Allen said it will pay approximately $154 million in cash for the ARINC division and expects the transaction to increase its earnings in fiscal year 2014, which begins April 1, 2013.
“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, CEO, and president.
Approximately 1, 000 ARINC employees will join Booz Allen as a result of the acquisition.
“The employees of our DSES business are joining a quality company with an established customer base that we believe will provide a great environment to continue maximizing their talents, ” said John Belcher, chairman & CEO of ARINC.
ARINC expects to invest and expand its e-Enabled Aircraft Solution, AviNet Global data Network Solutions, GLOBALink voice and data services and new airport passenger processing systems going forward.
The company also said it will continue to focus on growing its communications and IT services businesses.
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