Booz Allen Hamilton [BAH] on Monday said it has acquired the software services unit of SPARC to strengthen and complement its growing capabilities in Agile software development.
Terms of the deal were not disclosed. Booz Allen said the acquisition of the unit, its assets, and about 27 staff is expected to be accretive to earnings and add about $50 million in annual revenue to the company’s fiscal year 2017, which begins in April 2016.
Booz Allen said that Agile software development is an important tool in its “approach to solving complex technology and mission-critical systems challenges.”
SPARC’s product unit is not part of the deal and the company’s senior managers will be joining Booz Allen. The software unit’s key customers include the Department of Veterans Affairs and the Space and Naval Warfare Systems Command and other public and private sector entities.
“The SPARC team is a great addition to Booz Allen, bolstering our ability to deliver the large, highly integrated systems that clients are demanding,” Horacio Rozanski, president and CEO of Booz Allen, said in a statement. “This acquisition advances the firm’s long-term strategy, which is focused on ensuring we have the specialized talent and technical capabilities we need to drive growth across our client base.”
In addition to Agile software development, SPARC has expertise in DevOpps methods, and in cloud computing, UI/UX design, mobile technologies, cyber security, and production operations.
Booz Allen said that SPARC’s services group increased its sales by 26 percent in 2014. SPARC’s software unit will continue to operate from its facility in Charleston, S.C., where Booz Allen has 65 employees. In 2013 SPARC was ranked by Inc. 500 as the 14th fastest growing private company in the United States.
The McLean Group served as SPARC’s financial adviser on the deal.