Booz Allen Hamilton of McLean, Virginia, already the predominant government IT contractor in the Washington, D.C., area, has finished buying Liberty IT Solutions of Herndon for $725 million. The civilian services division of Booz Allen now includes Liberty IT Solutions.
There are roughly 600 workers in the company. It has facilities in Melbourne, Florida, and Exton, Pennsylvania, with its headquarters in Herndon. The company works on IT-modernization initiatives for government organizations and the healthcare sector, notably the Department of Veterans Affairs. Booz Allen’s growth in health care consulting will accelerate further with this acquisition.
Over $2 billion worth of IT-modernization projects is in the backlog at Liberty IT Solutions. Booz Allen feels that the acquisition will instantly boost earnings and sales growth. In addition to cash, Booz Allen used the proceeds from a $500 million debt issuance earlier this month to pay for the acquisition.
In the Washington, D.C., metro area alone, Booz Allen employs more than 14,000 people. In 2020, it generated $7.9 billion in income, virtually entirely from sales to the government.