Booz Allen Hamilton to buy defense systems unit of Arinc
By Marjorie Censer,
After nearly a decade without an acquisition, McLean-based contractor Booz Allen Hamilton broke its streak last week when it said it will buy the defense systems engineering and support division of Annapolis-based Arinc .
About 1,000 employees from multiple Arinc locations will become Booz Allen workers under the $154 million deal. Booz Allen said it expects the transaction to be completed later this year.
“We had been looking,” said Joseph Logue, who heads Booz Allen’s defense business. “This industry is just about to consolidate or in consolidation mode, so there’s a lot of things out there.”
He said the purchase will complement Booz Allen’s existing work, noting that Arinc’s unit has work with the Air Force and Navy, including about 200 employees in Panama City, Fla. at a naval surface warfare center there.
Arinc is a portfolio company of the Carlyle Group, which owned a majority stake in Booz Allen Hamilton before Booz Allen went public in 2010.
Booz Allen’s last buy was the Japanese subsidiary of Capgemini, which it bought in early 2003.
TechAmerica delivers bad news
The TechAmerica Foundation said last week that it is forecasting a flat federal information technology market through fiscal 2018.
In a presentation tied to its annual Vision Conference, the foundation predicted a total IT market of $77.2 billion in fiscal 2018, up slightly from $73.5 billion in fiscal 2013.
Still, Robert Haasof the foundation said that represents a decline when considering inflation. “We’re expecting the buying power to drop,” he said.
Within that total budget, the TechAmerica Foundation forecast a higher rate of growth — even though it would still represent a decline in constant dollars — for the civil IT market. The defense IT market offers a tougher picture.
In its review, the foundation said the opportunities for contractors will be in cybersecurity and helping the government consolidate operations.
Northrop Grumman and UMBC team on cyber
The University of Maryland, Baltimore County and the Northrop Grumman Foundation said they are establishing a cyber scholars program, funded by a $1 million Northrop grant.
The program, which will begin Jan. 1 out of the university’s cyber center, will recruit 15 to 20 students annually and particularly focus on training women and underrepresented minorities for cybersecurity careers.