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Lloyd Howell: Booz Allen Eyes More Tuck-In Deals in Cybersecurity, Health Care Areas

Lloyd Howell, chief financial officer at Booz Allen Hamilton (NYSE: BAH), said the company is looking to pursue more tuck-in acquisitions to increase its revenue and further advance growth initiatives, The Wall Street Journal reported Monday.

Booz Allen executives said the McLean, Virginia-based consulting firm plans to spend approximately $4 billion on acquisitions from April 2022 through March 2025 with a focus on companies that would bring capabilities in cybersecurity and health care technology, among other areas.

Howell said Booz Allen will continue to search for small and midsize companies as it looks at more than 100 potential acquisition targets as part of its annual assessment and intends to use $1.6 billion in liquidity to help fund potential acquisitions.

Booz Allen bought Herndon, Virginia-based health information technology consulting firm Liberty IT Solutions for approximately $725 million in June and then moved to acquire the remaining stake in cybersecurity company Tracepoint in September.

Howell said Booz Allen considers striking more acquisitions similar to the Liberty transaction as it sees a higher demand for digital services.

“Having future transactions like that would sort of be the sweet spot,” he added.

In July, Booz Allen recorded $1.99 billion in revenue for the quarter ended June 30, up 1.7 percent from the same period last year. Howell noted that the company expects its revenue to rise to approximately $8.6 billion in the year ending March, 31, 2022, reflecting a 10 percent increase from the previous year.

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