BCS acquires Allegient in energy, defense market push

BCS has acquired fellow government services provider Allegient Defense for approximately $7.5 million in cash with the intent to stand up a larger business that predominantly focuses on energy and defense programs.

The new organization will go by the name of BCS Allegient and be led by chief executive Dr. Alain R. Williams, who currently leads BCS.

Allegient's CEO Dr. Angel Diaz will take on the role of chief development officer for the combined company. Other terms of the transaction announced Tuesday were not disclosed.

BCS concentrates on applied research-and-development and generated all of its $3.5 million in unclassified prime obligations over the trailing 12 months from work with the Energy Department, according to USASpending.gov. Allegient's $5.4 million in obligations for that same timeframe are all from the Defense Department.

For Allegient, this move concludes approximately two years of being owned by Toronto-headquartered big data company NowVertical Group.

NowVertical originally purchased Allegient with the intent of using the business as a centerpiece of further investment and expansion across the U.S. public sector market.

But in NowVertical's announcement on the sale, the company essentially admits that achieving synergies from Allegient's core systems engineering and technical assistance business was a difficult exercise.

Less than 5% of Allegient's $17.8 million in total revenue for 2023 came from automation and data solutions, NowVertical said.

The transaction's potential value is $12.5 million when factoring in both a $1 million secured promissory note and a $4 million earnout clause, subject to Allegient hitting certain revenue and other financial milestones.