Throughout the end of 2021 and the first quarter of 2022, several major government contractors have made acquisitions to expand their existing capabilities and footholds within their markets. Some select moves are highlighted below. Obviously, there is much more to cover, but this is a highlighted array of an acquisitions for some of the major competitors in U.S. Government contracting.
At the end of 2021, CACI acquired two companies allowing it to gain a stronger foothold in a couple of niche areas: free-space optical (FSO) lasers and communications and secure, NSA-compliant end-user services. These acquisitions bring in new technology offerings, enabling CACI to gain a stronger presence within NASA and the Intelligence Community (IC).
SA Photonics, Inc.
In November 2021, CACI entered into an agreement to acquire SA Photonics for $275 million. The company was a leader in developing and deploying multi-domain photonics technologies – focused on generating, controlling, and detecting light across air, land, sea, space, etc.– for free space optical (FSO) communications – using air, outer-space, vacuum, etc. to communicate via light over a significant distance. In December 2021, CACI announced the acquisition was completed.
Through this acquisition, CACI expanded its standing as the leading American FSO laser capabilities provider, as well as increasing its US-based manufacturing capacity by adding SA Photonics’ facilities in California and Florida to its existing manufacturing footprint in New Jersey.
In January 2022, CACI announced it had acquired ID Technologies a month prior, in December 2021, for $225 million from The Acacia Group. ID Technologies specializes in providing enterprise IT, Infrastructure-as-a-Service (IaaS), and network modernization with NSA-compliant Commercial Solutions for Classified (CSfC) technology.
Through this acquisition, CACI plans to expand its secure network modernization offerings for the Department of Defense, IC, and other federal customers. Combined with ID Technologies’ CSfC capabilities, CACI will further its ability to provide federal employees with devices capable of operating virtually anywhere within essential national security systems, essential in today’s work-form-home, COVID environment. Additionally, CACI can leverage ID Technologies’ product and engineering capabilities when delivering cloud, network, and end-user services to its customers.
Booz Allen Hamilton
Since late 2021, Booz Allen Hamilton has acquired three companies allowing it to gain a stronger foothold in the software, cloud, and cyber markets.
In March 2022, Booz Allen Hamilton announced an agreement with EverWatch to acquire the company. The details of the acquisition are not yet available; however, it is set to close within the 2023 fiscal year. EverWatch will operate as a wholly owned subsidiary.
EverWatch provides advanced solutions to its defense and intelligence customers with core capabilities in software development and architecture, cloud, analytics, AI/ML, and Technical Signals Intelligence (TechSIGINT). EverWatch’s artificial intelligence (AI) and cyber portfolio will accelerate Booz Allen Hamilton’s classified software development and analytics capabilities for its national security clients.
In September 2021, Booz Allen Hamilton completed its acquisition of TracePoint, a company specializing in a field of cybersecurity that focuses on the identification, investigation, and remediation of cyberattacks known as Digital Forensics and Incident Response (DFIR), for an undisclosed sum.
Initially, Booz Allen Hamilton announced in January 2021, that it had made a strategic investment in TracePoint. The September acquisition was Booz Allen Hamilton exercising an option to purchase TracePoint’s remaining equity and integrate it into its Commercial Cyber business. The acquisition of TracePoint is part of Booz Allen Hamilton’s long-term growth plan to create a scaled business in incident response, enterprise consulting, and managed services. Additionally, adding TracePoint’s existing customer base will accelerate Booz Allen Hamilton’s position as a leading firm within the private sector’s cybersecurity market.
Liberty IT Solutions
In June 2021, Booz Allen Hamilton completed its acquisition of Liberty IT Solutions, a company focused on Salesforce-implementation at federal agencies, for $725 million. Liberty will function as a subsidiary within the Civilian Services Group at Booz Allen Hamilton.
Through the acquisition, Booz Allen Hamilton adds Liberty’s existing Veteran’s Affairs (VA) Department footprint, digital modernization services to support implementations of Salesforce, as well as other low code-no code platforms. Additionally, Booz Allen Hamilton will gain Liberty’s dedicated Agile Center of Excellence in Melbourne, Florida. Liberty’s software development expertise and Agile, DevSecOps, and cloud expertise will bolster Booz Allen Hamilton’s ability to provide end-to-end digital solutions to its federal customers by expanding its capabilities and improving its efficiency.
In late 2021 and early 2022, ManTech completed two acquisitions to expand its existing analytics footprint.
Technical and Management Assistance Corporation (TMAC)
In January 2022, ManTech completed its acquisition of Technical and Management Assistance Corporation (TMAC), a company specializing in providing advanced data engineering services to the IC, for an undisclosed sum. Post-acquisition, TMAC operates as a wholly owned subsidiary of ManTech.
Through the acquisition, ManTech gains TMAC’s experience in systems engineering, data collection and governance, analytics, and mission management systems, which bolsters ManTech’s existing position as a leader in SIGINT and data analytics capabilities.
In December 2021, ManTech completed its acquisition of Gryphon Technologies, a systems engineering firm, for $350 million from AE Industrial Partners. Gryphon specialized in providing DoD customers with model-based systems engineering (MBSE), predictive analytics, data/computational science, and cloud engineering solutions for driving mission success.
Through the acquisition, ManTech will add the aforementioned capabilities, as well as over 1,500 personnel from Gryphon, to build on ManTech’s existing Bringing Digital to the Mission® program and expand its defense sector footprint.
FedSavvy Strategies’ Takeaways
- CACI’s acquisitions focused on gaining further capabilities into boutique product development for DoD and the IC. This is generally consistent with other systems integrators working to grow their business into product and technology development.
- Booz Allen Hamilton’s acquisitions largely bolster its cyber, data science, IT products and Intelligence Community support. This is very consistent with their long-term corporate strategy in addition to gaining more traction in technology enabled services.
- ManTech’s acquisitions are generally consistent with positioning themselves to be something other than staff augmentation and absolutely more focused on the Intelligence Community and higher end engineering services for DoD.