Why Booz Allen Hamilton is acquiring Liberty IT Solutions

Tech-focused consulting firm Booz Allen Hamilton is in the process of acquiring leading IT and services firm Liberty IT Solutions for US$725m. This acquisition sees the pairing of Liberty’s leading Salesforce and LCNC qualifications with Booz Allen’s advanced technologies and proven people, processes and systems to help deliver digital transformation to government. 

Liberty IT, which is headquartered in Virginia and employs some 600 solutions architects, engineers and other tech talent, has been a leading digital partner driving transformation across the federal IT ecosystem since its founding in 1996, with partners including Salesforce cloud CRM. Its successful IT modernization track record quickly established Liberty as a top-tier provider of solutions in the federal space. 

Booz Allen’s acquisition strategy

For Booz Allen, this acquisition in innovative tech and talent builds on what is a long-term strategy for the company in driving continued growth.

Like many of its previous acquisitions, it is the combination of people and capabilities that is paramount enabling Booz Allen to give its clients access to a deeper range of advanced, scalable technology solutions and deep digital expertise, deepening and strengthening the consulting firm’s digital transformation portfolio. 

“The addition of Liberty strengths our unique market position as a leader in digital transformation, accelerates already robust growth in our health business and beyond, and delivers value for our people, our clients, and our shareholders,” says Haracio Rozanski, Booz Allen’s CEO. 

Previous acquisitions, like this one, have sought to blend the firm’s heritage consulting work with technical expertise. In 2005, Booz Allen acquired SPARC, allowing Booz to create an Agile development hub in South Carolina in order to foster collaboration with customers such as Veterans Affairs and the Navy. While its 2009 acquisition of Aquilent (US$250m) bolstered Booz’s Agile, DevOps and open source capabilities.

What does Liberty offer Booz Allen?

Liberty’ts extensive experience driving digital transformation across government gives Booz Allen the strengths it needs to the critical needs as government as it “pushes to accelerate the modernisation of IT systems to increase efficiencies and outcomes”, says Kristine Martin Anderson, Booz Allen’s executive VP. 

With this acquisition, Booz Allen will create a powerful digital transformation portfolio that includes the following:

• End-to-End Digital Solutions These will involve API development and Low Code/No Code (LCNC) solutions. Liberty will enhance Booz Allen’s ability to deliver end-to-end digital solutions for client — blending leading technologies and practices in smart cloud strategies, secure architecture, API-first design, Agile development, DevSecOps, human-centered design, and change management to drive technology adoption and deliver rapid and reliable value across a variety of markets. 
• Expanded Salesforce Capabilities Booz Allen clients will have access to a broader suite of digital transformation and strategic Salesforce capabilities through more channels. Liberty is recognized as a Salesforce Navigator Expert for its demonstrated thought leadership in the Public Sector category, as well as proven delivery on the largest and most complex projects while achieving the highest standards of customer success. Its portfolio includes 70+ successful Salesforce projects and production-scale implementations; 140+ Salesforce architects, administrators, managers, and developers; and 340+ Salesforce certifications. 
• Advanced Technology Integration By integrating Booz Allen’s capabilities in artificial intelligence, machine learning, cybersecurity, and other advanced technologies across an expanded digital solutions portfolio, clients will have access to an even broader and deeper range of transformative technologies.  
• Strategic Growth Liberty has built a backlog of more than $2 billion in digital transformation work over the past 18 months. The acquisition is expected to create significant opportunities through meaningful revenue synergies and be a growth driver within Booz Allen’s federal portfolio.  

Where next for Booz Allen?

With the Biden administration having announced a focus on cybersecurity, Booz Allen is looking for potential cybersecurity M&A options as the company views itself as “uniquely positioned to both help the nation and capture opportunities in this critical area”, says Rozanski.