This is technology M&A deal number 273 that ChannelE2E has covered so far in 2022.
EverWatch: Government Consultancy Background
EverWatch, headquartered in Reston, Virginia, specializes in software development and architecture, cloud, analytics, AI/ML, and TechSIGINT. Those areas of expertise align with Booz Allen's cyber operations, mission analytics, AI, and 5G offerings, the buyer asserted.
The deal will help Booz Allen to "accelerate the delivery of classified software development and analytics capabilities for national security clients," the buyer indicated. EverWatch will become a wholly owned subsidiary of Booz Allen once the deal closes.
Enlightenment Capital formed Everwatch as an intelligence contractor in 2018. The strategy involved merging IEA (Ian Evan & Alexander Corp.), ACES Inc. and two other government services firms whose names were not disclosed. Fast forward to 2020, and Everwatch acquired BrainTrust for cloud and IT services capabilities. Through 2020, Everwatch had about 500 employees and had made seven acquisitions, Washington Business Journal reported at the time.
Booz Allen: Acquiring Technology and Cybersecurity Consultancies
Booz Allen, meanwhile, has been scouring the market for IT consulting and cybersecurity acquisitions. The company’s war chest from 2021 through 2025 includes $3.5 billion to $4.5 billion in total capital deployment that “prioritizes strategic acquisitions,” Booz Allen CEO Horacio Rozanski told Wall Street analysts during an earnings call on January 28, 2022.
Those comments came after Booz Allen acquired Trace Point — a digital forensics and incident response company — in September 2021. And on the cloud consulting front, Booz Allen acquired Salesforce government cloud partner Liberty IT Solutions in May 2021.
In a prepared deal about the EverWatch acquisition, Booz Allen National Security Sector President Judi Dotson said:
“U.S. national and economic security depends on secure, trusted, and resilient technology, and in the most dynamic threat landscape of our time, delivering advanced solutions with speed and agility is essential for mission success. Combining Booz Allen’s mission experience and advanced technologies with EverWatch’s classified software development and analytics capabilities will help implement faster and more comprehensive solution delivery to help defense and intelligence agencies transform and stay ahead of threats.”
Booz Allen Buys EverWatch: Executive Perspectives
Multiple executives offered perspectives on the deal.
Noted Matt Calderone, chief strategy officer at Booz Allen:
“EverWatch is an excellent strategic and cultural fit and this acquisition is a strategic accelerator well aligned with Booz Allen’s VoLT strategy, our investment thesis, and our expanding National Cyber platform capabilities. Our combined capabilities will deliver exceptional value for our clients, employees, and shareholders.”
Added EverWatch CEO John Hillen:
“Booz Allen and EverWatch share a deep commitment to protecting our national interests with advanced technology, mission intimacy, and digital transformation. We look forward to the combined strength of our organizations to deliver exceptional support to clients in the Intelligence Community and beyond."
Concluded Devin Talbott, founder and managing partner of Enlightenment Capital:
“EverWatch has invested heavily in developing innovative solutions and has become a market leader solving some of the most complex problems facing the national security sector. The combination with Booz Allen will further deepen innovation capabilities, accelerate our collective support of critical national security efforts, and enhance opportunities for EverWatch’s growing, skilled employee base."
Booz Allen now has roughly 30,000 employees, and generates approximately $8 billion in annual revenue.