Booz Allen Hamilton (NYSE: BAH) Chief Financial Officer Lloyd Howell characterized to investors Wednesday the firm’s pending $250 million acquisition of digital services contractor Aquilent announced Tuesday as a “tuck-in, capability-based” versus other large scale-focused transactions in the industry over the past year.
Howell told attendees of the Credit Suisse Industrial Conference in Palm Beach, Fla. the purchase falls under Booz Allen’s “Vision 2020” strategy launched in 2014 that includes digital services, cloud computing, systems development, engineering and cybersecurity as core areas of investment for the McLean, Virginia-based firm.
Howell said Booz Allen felt comfortable at its $5.3 billion-$5.4 billion in annual revenue even as other government services contractors such as Leidos Holdings (NYSE: LDOS) and CACI International (NYSE: CACI) closed deals to add scale in a year that also saw the former Computer Sciences Corp. (NYSE: CSC) U.S. public sector business merge with SRA International to form CSRA (NYSE: CSRA).
“We also looked at those opportunities. That being said, our strategy emphasizes high-quality work based on trusted relationships with our clients. That by its inherent nature doesn’t speak to solely being competitive on size, ” he added.
The firm also viewed sizeable acquisitions as potential distractions from its focus on its intended growth areas as part of “Vision 2020, ” according to Howell.
That strategy also played into Booz Allen’s 2015 purchase of Charleston, S.C.-based SPARC to add new software developers and engineers with experience in agile and open source programs.
Booz Allen anticipates Aquilent to contribute $35 million in revenue for fiscal year 2017 ending in April and set an annual sales goal of $50 million for SPARC by FY 2017.
Aquilent brings to Booz Allen digital and data services contract work with agencies such as the Department of Health and Human Services and the General Services Administration.