Booz Allen heads for Wall Street with IPO

Company files to become public before the end of the year

Booz Allen Hamilton Inc. made it official today when it filed documents to go public.

In the filing, the company says part of the proceeds will be used to pay off about $545.2 million in debt that is left from its acquisition by The Carlyle Group, which acquired Booz Allen in 2008.


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The company's IPO could come before the end of the year, according to the filings with the Security and Exchange Commission.

In its fiscal 2010, which ended March 31, Booz Allen had $5.1 billion in revenue and a net income of $25.4 million.

The company has not set the price range for its shares, which it hopes will trade under the BAH ticker, or the total number of shares to be issues. Those details will be the subject of later filings. 

The investment banks Morgan Stanley, Barclays Capital, Bank of America-Merrill Lynch, Credit Suisse Security, Stifel Nicolaus, BB&T Capital Markets, Lazard Capital Markets and Raymond James are involved in the stock offering.

That Booz Allen is going public is not a surprise. The private equity firm The Carlyle Group acquired Booz Allen in 2008 as part of a move to separate the company's government and commercial businesses.

Booz Allen executives, such as chairman and chief executive officer Ralph Shrader, have voiced a desire for Booz Allen to remain independent as a way of preserving its unique culture. An IPO allows The Carlyle Group to recoup its investment and for Booz Allen to remain an independent company.

As a public company, Booz Allen expects to focus on areas in the government market such as cybersecurity, government efficiency and procurement, health care transformation, systems engineering and integration, cloud computing, advanced analytics and financial management, according to the filing.

About the Author

Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.

Reader Comments

Wed, Jun 23, 2010

Glad to see that someone actually read the filing. A company that nets 25M on sales of 5.1B is not going to be an attractive investment in an IPO. And the balance sheet has been loaded up with debt, including a 500m recap in december. The truth is that the last ten years of growth at booz has been nothing but headcount and revenue, with profitability and integrity left by the wayside. When Carlise finally looked at the books getting ready for ipo they realized how much of a ponzi scheme booz had become. Even after a wholesale massacre of partners and principals the company will only return meager profiits. I worked for booz for over a decade and watched a great company hollowed out by greedy, venal, insufferable sycophants. You have your bag of gold but what you have left behind is a travesty. I hope the market punishes your hubris.

Tue, Jun 22, 2010 JANUS Washington, DC

Read the June 21 filing. This is not a full-up IPO. Carlyle/"Booz Allen Holding"/Coinvest is clear that it only wants to raise a few hundred million, not sell out its controlling 81 percent equity stake. (The BA "partners" own the rest.) So this is not "the big one," but will test the market for appeal of the company. When companyies are acquired, they are usually manhandled by the acquirer to pay out a humongous special dividend to the acquirer as an early return. This was done to the tune of > $500 million, plus there was a lot of debt financing in the 2008 acquisition. The company went from negligible debt before the acquisition to heavy debt under Carlyle.

Tue, Jun 22, 2010 Maynard VA

Is it really worth it when you consider all the hassles of SEC reporting and Sarbox compliance issues?? Really?

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