Science Applications International Corp. (NYSE: SAIC) has agreed to buy Halfaker and Associates for approximately $250 million in cash to expand its portfolio of health information technology offerings.
SAIC said Thursday it will use its existing cash on hand and incremental debt to fund the acquisition that is expected to conclude by the end of the second quarter of its 2022 fiscal year, ending July 30.
Arlington, Virginia-based Halfaker is a federal health IT company focused on delivering digital services, cloud platforms, data analytics, cybersecurity support and other IT services to federal agencies including the departments of Veterans Affairs, Health and Human Services and Defense. The company has an Agile Delivery Center in Clearwater, Florida.
âThis acquisition reinforces SAICâs commitment to supporting the government healthcare mission, including our strong support for the health and wellbeing of veterans,” said Nazzic Keene, CEO of SAIC and a 2021 Wash100 Award winner.
She added that the transaction would give the company access to health IT contract vehicles involving DOD and other federal agencies.
SAIC also expects the acquisition to build up its portfolio of digital transformation offerings in areas such as digital engineering, DevSecOps, process improvement and automation and be accretive to its adjusted diluted earnings per share, revenue growth rate and free cash flow in FY 2022.
Dawn Halfaker, founder, president and CEO of Halfaker and Associates, said the company aims to hone its ability to provide technical services and professionals required in agencies’ digital transformation efforts.
Robert W. Baird & Co. served as Halfaker and Associatesâ exclusive financial adviser in the deal.
âIt is such a privilege to work with someone for whom you have such admiration. From Dawnâs distinguished military career to her relentless dedication to support veterans and wounded warriors, she has built such an amazing company with Halfaker and Associates,â said Jean Stack, managing director for Baird and a previous Wash100 awardee. âIt takes a special company like SAIC to take Dawnâs vision and passion to the next level.â
Crowell & Moring advised Halfaker on the dealâs legal aspect. King & Spalding was SAICâs legal counsel in the transaction.
If youâre interested in the federal governmentâs digital modernization efforts, then check out the Potomac Officers Clubâs 2021 Digital Transformation Forum coming up on Aug. 10. To register for this virtual forum and view other upcoming events, visit the POC Events page.
