Booz Allen Hamilton to acquire Maryland-based eGov Holdings Inc. for $250 million

Published November 29, 2016 by Robert Powell, III

McLean-based Booz Allen Hamilton plans to acquire the Laurel, Md.-based digital services firm eGov Holdings Inc. for $250 million.

The Maryland firm does business as Aquilent and is a provider of solutions for the Federal government.

Booz Allen said the deal will bolster its  growing technology capabilities and talent base, particularly its emphasis on building citizen-focused digital services.

Aquilent will be the hub of Booz Allen’s digital business. Upon closing of the transaction, eGov Holdings Inc. will be a wholly-owned subsidiary of Booz Allen Hamilton. The transaction is expected to close by Dec. 31 and is subject to customary closing conditions.

Aquilent employs about 350 people who provide digital and cloud services for the U.S. Department of Health and Human Services, U.S. Postal Service, U.S. General Services Administration and other federal clients.

Aquilent has grown rapidly, with revenues growing at a 28 percent compounded annual growth rate during the past five years. For the remainder of Booz Allen’s fiscal year 2017, the transaction is expected to add approximately $30 million to $35 million of revenue. It is expected to be accretive to Booz Allen earnings and to add to operating margin in fiscal year 2018.