Booz Allen makes $154M deal for ARINC division

Booz Allen Hamilton is spending $154 million to buy the defense systems engineering and support division of ARINC in a move that builds on Booz Allen's engineering and defense market position.

ARINC’s Defense Systems Engineering and Support division offers aviation and maritime engineering, weapons modernization and sustainment, systems engineering and integration.

The proposed acquisition "offers opportunities for us to bring deeper and broader expertise to our clients in areas where we see a number of compelling opportunities,” said Ralph W. Shrader, Booz Allen chairman, president and CEO.

The Carlyle Group owns substantial stakes in both companies, so this sale will keep ARINC’s Defense Systems Engineering and Support division within the Carlyle family.

ARINC reported that the sale will enable the company to invest and expand its mission-critical systems and solutions, including e-Enabled Aircraft Solutions, AviNet Global data Network Solutions, GLOBALink voice and data Services.

It also allows for the expansion of its new airport passenger processing systems, including self-boarding gates, positive train control solutions, aircraft modernization programs for aging government aircraft, public safety radio networks for first responders and high-end security systems for critical infrastructure, ARINC said.

Booz Allen Hamilton also said that the ARINC division has a stake in the growing command, control, communications, computing, intelligence, surveillance and reconnaissance and engineering services/prototyping segments of the defense market.

This presents opportunities for the division’s capabilities in adjacent intelligence, law enforcement, homeland security and international systems sectors, Booz Allen said.

About the Author

Mark Hoover is a staff writer with Washington Technology. You can contact him at mhoover@washingtontechnology.com, or connect with him on Twitter at @mhooverWT.

Reader Comments

Wed, Dec 5, 2012

When the Carlyle "family" was presented to ARINC, the sale was touted as "good". Bring much needed resources to the table for business development. All the indicators of a raw deal for ARINC was a foot. Previous "gems" of Carlyle were already shutting down ops - but ARINC did not learn - watch - or care!! Another "great" company passes in the night..23 year proud ARINC Manager!!

Wed, Oct 31, 2012

Concur with the 19 October post. Project managers have collected paychecks without providing the service of the contracts. They run out of time and money with poor results. Good Luck BAH!

Fri, Oct 19, 2012

I could not agree more with the first two comments! Caryle has already cut benefits at ARINC so that they could look my attractive to buyers and still could not get any buyers! ARINC's problem is that the managers are mismanaging projects and the GOV personnel are cutting contracts because of the managers ARINC has. If Booz Allen Hamilton does not clean house at the top and get better managers in their then they just wasted their time with this acquisition. ARINC has a lot of great workers and middle managers!!!! They are just blindly managed.
I also believe this is a huge paper work shuffle within the Carlyle group. Nobody else would buy them to they made BAH take them over!!!!!!!

Wed, Oct 17, 2012

This is a Carlyle shell game. This way they can more easily sell what is left of ARINC and make some real dollars to line their pockets. Beware of corporate raiders. Carlyle is destroying great companies in order to line their alreadt fat pockets with money. A microcosm of what is wrong with america these days.

Tue, Oct 16, 2012

The sale may keep Arinc within the Carlyle family, but it probably won't allow Arinc or Booz to invest in their businesses. Rather, the bulk of the $154M purchase price will go straight into Carlyle pockets. Carlyle couldn't find a buyer a few years back for Arinc, so they simply told Booz to purchase them. Given that Booz only recently said that they were cutting staff to move into the commercial sector, why are they loading up even more with government services? With Carlyle picking their pockets at this rate, Booz might not make it to their 100th anniversary.

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