Booz Allen HamiltonÂ (NYSE: BAH) Chief Financial Officer Lloyd HowellÂ characterized to investors WednesdayÂ the firm’s pendingÂ $250 million acquisition of digital services contractor Aquilent announced Tuesday as a “tuck-in, capability-based” versus other large scale-focused transactionsÂ 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 2014Â that includes digital services, cloud computing, systems development, engineeringÂ andÂ cybersecurityÂ as core areas of investment for the McLean, Virginia-based firm.
Howell said Booz Allen felt comfortable atÂ its $5.3Â 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 InternationalÂ to form CSRA (NYSE: CSRA).
“We also looked at those opportunities. That being said, ourÂ strategy emphasizes high-quality work based on trusted relationships with our clients.Â That byÂ 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 onÂ its intended growth areasÂ as part of “Vision 2020, ” according to Howell.
That strategy also played into Booz Allen’s 2015 purchase ofÂ Charleston, S.C.-basedÂ SPARCÂ to add new software developers and engineersÂ 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 AllenÂ digital and data services contract work with agencies such as the Department of Health and Human Services and the General Services Administration.