Booz Allen Hamilton (NYSE: BAH) said its move to acquire cybersecurity firm EverWatch would allow it to secure “billions of dollars” worth of contracts and compete with rival contractors such as Lockheed Martin (NYSE: LMT) and Raytheon Technologies (NYSE: RTX), Defense News reported Monday.
In March, Booz Allen agreed to buy EverWatch as part of a push to accelerate the delivery of software development and analytics capabilities for national security clients and support digital and cyber transformation efforts of agencies within the intelligence community.
The proposed deal hit a snag after the Department of Justice filed a civil antitrust lawsuit in late June, claiming the transaction would impact competition for Optimal Decision, a simulation and modeling services contract with the National Security Agency, and result in a monopoly bidder.
Attorneys for Booz Allen said in court filings the planned merger would promote competition and allow the company to compete with larger contractors.
“The government’s narrative is not only inaccurate — it makes no sense,” the Booz Allen attorneys said in documents filed Aug. 1 in a federal court in Maryland. “As a matter of basic math, the government’s suggestion that the proposed transaction is a ‘scheme’ to buy off competition for OD is bizarre.”
Booz Allen expects the acquisition to conclude in the first quarter of its fiscal year 2023.
