Booz Allen Response to Antitrust Suit

Rhea-AI Summary

Booz Allen Hamilton (BAH) has issued a statement regarding its proposed $440 million acquisition of EverWatch. The firm refutes the Department of Justice’s concerns, asserting that the acquisition would enhance competition and strengthen national security capabilities. Booz Allen emphasizes that this transaction would accelerate technology development and improve the delivery of classified software and analytics. The company believes the merger will create a more comprehensive range of services for intelligence and defense clients, ultimately benefiting government agencies and taxpayers.

Positive

• Proposed acquisition of EverWatch valued at $440 million could enhance competition in the sector.
• Acquisition expected to accelerate technology development and improve delivery of classified solutions.
• Transaction aims to drive digital and cyber transformation in the Intelligence Community.

Negative

• Department of Justice has raised concerns about potential competitive harm from the acquisition.

MCLEAN, Va.--(BUSINESS WIRE)-- Booz Allen Hamilton has issued the following statement regarding its proposed EverWatch acquisition, from company spokesperson Jessica Klenk:

For 108 years Booz Allen Hamilton has served clients with integrity and dedication. We are proud of the work we do in service of our government partners to help address some of the toughest problems this country faces. We take very seriously our responsibility to provide the most innovative and effective solutions to meet critical national missions.

We strongly disagree with the Department of Justice’s characterization of the proposed $440 million, approximately 500-person EverWatch transaction. We believe the acquisition would bring together two companies with complementary capabilities to support our collective national security interests and would enhance competition overall in an industry that is highly competitive.

The transaction would accelerate technology development cycles and enable faster delivery of classified software development and analytics for national security clients, including AI, full-spectrum cyber operations, mission analytics, 5G, and TechSIGINT capabilities.

Grounded in Booz Allen’s culture, values, and commitment to national security missions, this transaction would drive major digital and cyber transformation in the Intelligence Community and beyond, creating a more comprehensive portfolio of offerings to a wider range of intelligence and defense clients.

Booz Allen believes the transaction would deliver significant benefits to our government clients and we refute any suggestion that the proposed transaction would harm government agencies or taxpayers.

About Booz Allen Hamilton

For more than 100 years, military, government, and business leaders have turned to Booz Allen Hamilton to solve their most complex problems. As a consulting firm with experts in analytics, digital solutions, engineering, and cyber, we help organizations transform. We are a key partner on some of the most innovative programs for governments worldwide and trusted by its most sensitive agencies. We work shoulder-to-shoulder with clients, using a mission-first approach to choose the right strategy and technology to help them realize their vision.

With global headquarters in McLean, Virginia, our firm employs nearly 29,300 people globally as of March 31, 2022, and had revenue of $8.4 billion for the 12 months ended March 31, 2022. To learn more, visit www.boozallen.com. (NYSE: BAH)

BAHPR-CO

View source version on businesswire.com: https://www.businesswire.com/news/home/20220630005786/en/

Media Relations – Jessica Klenk, Klenk_Jessica@bah.com

Investor Relations – Nathan Rutledge, Rutledge_Nathan@bah.com

Source: Booz Allen Hamilton Holding Corporation

FAQ

What is Booz Allen Hamilton's proposed acquisition of EverWatch?

Booz Allen Hamilton is proposing to acquire EverWatch for $440 million, aiming to enhance national security capabilities.

How does Booz Allen Hamilton justify the acquisition of EverWatch?

Booz Allen Hamilton believes the acquisition will improve competition and accelerate technology delivery for national security clients.

What are the main concerns raised by the Department of Justice regarding the acquisition?

The Department of Justice has expressed concerns that the acquisition may harm competition in the sector.

How will the acquisition of EverWatch impact Booz Allen Hamilton's clients?

The acquisition is expected to create a broader range of services, benefiting intelligence and defense clients.