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.