| | Booz Allen Hamilton is
to separate its US
government and global
commercial businesses,
selling a majority stake
in the US government
business to The Carlyle
Group for $2.54bn.
The company said the
strategic realignment
will enable Booz Allen's
two businesses to
refocus on their
distinct end markets. At
the same time as
Carlyle's investment,
Booz Allen's commercial
business will form a
stand-alone company,
which will be owned and
operated by the
commercial officers. The
transaction is expected
to close in mid-late
2008, subject to
shareholder and
regulatory approvals and
other customary closing
conditions.
Booz Allen provides
management consulting,
engineering, information
technology, and systems
development and
integration services
supporting | |
|
| | mission-critical
programmes for the US
government.
Headquartered in McLean,
Virginia, Booz Allen's
US government business
has more than 18,000
employees in 80 offices
worldwide, generating
annual net revenues in
excess of $2.7bn.
Carlyle, based in the
District, has $81.1bn
under management and is
one of the largest
private-equity firms in
the world.
"This separation of
our core businesses
marks a dynamic new
chapter in our history,"
stated Dr Ralph W.
Shrader, chairman &
chief executive officer
of Booz Allen Hamilton.
"For 94 years, Booz
Allen has adapted and
evolved as market
realities have changed
and our areas of
expertise have grown. We
continually evaluate
whether we have in place
the best strategy and
structure to succeed and
deliver the highest | |
|
| | quality service to our
government and
commercial clients,
which is our top
priority."
Upon completion of
the strategic
realignment, Booz Allen,
led by Shrader, will
focus on serving its US
government clients.
"Booz Allen is proud of
the important work we do
to help government
clients meet their
critical missions in
national defence, health
care,
telecommunications, and
other vital areas. We
bring specialised
expertise to solve tough
problems, and have a
track record of
delivering results that
are practical,
effective, and of
significant value," said
Shrader.
Peter Clare, Carlyle
managing director and
head of the Global
Aerospace, Defence and
Government Services
sector team, said: "The
partners of Booz Allen | |
|
| | have built a world-class
business and brand
focused on providing
critical services to
government clients. We
are excited about
partnering with the firm
and supporting the
continued growth of the
business and will
maintain the unique
culture that has made
Booz Allen so
successful."
Ian Fujiyama, the
Carlyle managing
director who led the
transaction, added:
"Booz Allen provides its
clients with an
unparalleled breadth of
domain expertise and
technical capabilities.
With a strong, diverse
portfolio of customer
relationships, we
believe that Booz Allen
is well positioned to
continue its market
leadership."
Through the
realignment, the
commercial and
international business
will become an
independent company | |
|
| | focused on global
management consulting.
"Booz Allen is
already a clear leader
in the management
consulting industry,
with a powerful
reputation, enviable
client base, strong
financial position, and
unwavering commitment to
serving the senior
agenda of the world's
leading institutions. As
a stand-alone company,
the new commercial and
international business
will have greater
agility to meet the
needs of its client
base, maximize its
potential, and realize
significant growth
across the globe," said
Shrader.
The realignment has
been unanimously
recommended by Booz
Allen's Board of
Directors.
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