DLH's newest acquisition increases presence with defense agencies
By
Ross Wilkers
Sixteen months after one acquisition, health IT company DLH's latest deal adds more research and systems development work for Defense Department agencies.
Health IT and digital services company DLH has acquired Irving Burton Associates for $32 million in cash to add new research and systems development work for the Defense Health Agency and Army.
IBA will become a subsidiary of DLH and join its mission services and solutions operating unit led by Helene Fisher as president, the companies said Thursday.
Falls Church, Virginia-based IBA touts one of its main Defense Department customers other than DHA as including Army’s Telemedicine & Advanced Technology Research Center. IBA’s contracts with defense agencies cover services such as digital transformation, data analytics, cybersecurity, and artificial intelligence.
Current IBA president Mary Dowdall will remain with DLH, the companies said.
Atlanta-headquartered DLH purchases IBA nearly 16 months after its acquisition of Social & Scientific Systems that significantly grew a footprint with the National Institutes of Health and Centers for Medicare and Medicaid Services.
The deal for SSS pushed DLH past $330 million in revenue, while IBA is anticipated to contribute approximately $25 million in annualized sales going forward. IBA estimated its backlog at around $143 million at the time of closing.
DLH said the $32 million transaction value for purchasing IBA includes a $5.5 million tax benefit.
Baird served as financial adviser to DLH and KippsDeSanto & Co. acted in the same role for IBA.
Holland & Knight LLP and Becker & Poliakoff LLP served as legal advisers to DLH. Baker Tilly and the Lockton Companies provided consulting services to DLH.