Booz Allen Hamilton to buy ARINC unit for $154M
MCLEAN, Va. (AP) — Booz Allen Hamilton Holding Corp. is buying ARINC Inc.'s defense systems engineering and support unit for about $154 million in cash.
The parent company of consulting firm Booz Allen Hamilton said Tuesday that the division will complement its existing service base.
"The defense systems engineering and support unit is a good strategic fit that builds on Booz Allen's existing engineering capabilities and defense market position and offers opportunities for us to bring deeper and broader expertise to our clients in areas where we see a number of compelling opportunities," Booz Allen Hamilton Chairman, President and CEO Ralph Shrader said in a statement.
About 1,000 ARINC workers are expected to join Booz Allen Hamilton, which anticipates the deal will add to its fiscal 2014 earnings. Booz Allen Hamilton has approximately 25,000 employees.
The buyout is expected to close later this year.
Shares of Booz Allen Hamilton, which is based in McLean, Va., gained 33 cents, or 2.6 percent, to $13.07 in afternoon trading. Over the past year, the stock has traded in a range of $11.85 to $19.23.