Booz Allen acquires PAR Government Systems for $95M

Booz Allen Hamilton has acquired the PAR Government Systems Corp. business for approximately $95 million in a move by the former to further build out its digital battlespace business in the defense landscape.

This transaction is one of two announced Monday by PAR Technology, a provider of cloud-based hardware and software solutions to the restaurant and retail industries. PAR lined up buyers for both of its government-facing entities in dual transactions worth $102 million combined in order to focus on its core business line.

All figures on the transactions are disclosed in a regulatory filing by PAR, given it is a publicly-traded company.

PGSC specializes in offerings for use in imagery, data sharing, visualization, real-time communications and mobile situational awareness functions.

PGSC has received approximately $52 million in unclassified prime obligations over the trailing 12-month period with the Air Force representing the largest share of that spend at 67%, according to GovTribe data.

The subsidiary opened for business in 1985 and now becomes a part of Booz Allen's defense business led by its president Judi Dotson.

"With increasing threats to joint all domain operations and heightened geopolitical uncertainty, securing the nation’s future against the pacing threat requires industry to invest and innovate in new ways," Dotson said in a release. "This acquisition reinforces Booz Allen’s commitment to help accelerate the modernization of tactical warfighting mission systems and secure the future."

Booz Allen plans to incorporate PGSC's workforce and product library into ongoing technology development efforts across multiple mission areas. Those include geospatial mapping, countering uncrewed aerial systems, situational awareness and space data solutions in proliferated-Low Earth Orbit.

PAR's second divestiture involving its government work will see NexTech Solutions Holdings acquire the Rome Research Corp. subsidiary for approximately $7 million. All parties involved expect to close that transaction by the end of June, which marks the end of PAR's second fiscal quarter.

RRC core focus areas for its technical services cover information systems, satellite communications and control, and telecommunications.

"NTS has agreed to acquire RRC to diversify our customer base and push our services into multiple COCOMS (combatant commands) across the globe," NTS' chief executive Joseph Paull said in a release.

For NTS, this transaction takes place one year after the company itself was acquired by the Toronto-headquartered private equity firm Clairvest.

Clairvest manages approximately $3 billion in assets and is using NTS as the centerpiece for building a larger, growing defense technology company.

Jefferies and King & Spalding LLP advised Booz Allen on the transaction. Baird and Gibson, Dunn & Crutcher LLP advised PAR.

Regarding the road ahead for PAR, its CEO Savneet Singh had this to say in a release on the divestiture agreements:

“Today’s announcement represents a milestone in advancing PAR’s goal to become the world’s largest technology provider to enterprise foodservice. The sale of our government operating segment to notable strategic buyers, Booz Allen Hamilton and NexTech Solutions provides a clear fit for these businesses, allows for a seamless transition and sets up both PGSC and RRC for continued success. The divestiture is part of our efforts to divest non-core assets and reinvest capital where it will receive the highest return.”