Booz Allen Hamilton has signed a definitive purchase agreement to sell its state and local government transportation consulting business to CH2M HILL. State and local government transportation consulting accounts for less than one percent of Booz Allen’s business, and this transaction enables the firm to better focus on its core federal government work.
In its latest reported fiscal year ended March 31, 2010, Booz Allen Hamilton had annual revenues of more than $5 billion, and the state and local transportation business being sold to CH2M HILL accounts for approximately $50 million in annual revenue. Approximately 150 Booz Allen employees have been offered employment by CH2M HILL. Booz Allen has over 25,000 employees worldwide.
Under the terms of the agreement, CH2M HILL will pay Booz Allen Hamilton $28.5 million in cash, subject to certain adjustments. At the closing of the transaction, currently expected to be during the third calendar quarter of 2011 and subject to customary closing conditions, Booz Allen Hamilton will begin to assign its current state and local contracts to CH2M HILL.
Booz Allen Hamilton has a large and growing federal transportation business serving clients such as the Federal Aviation Administration, AMTRAK, the Federal Highway Administration, National Transit Administration, and National Highway Traffic Safety Administration, and this transaction enables the firm to focus more directly on that core client base. The purchase also aligns with CH2M HILL’s transit and rail planning, design, construction, program management, and operations capabilities. Headquartered near Denver, Colorado, USA, employee-owned CH2M HILL is a global leader in consulting, design, design-build, operations, and program management for government, civil, industrial and energy clients.
About Booz Allen Hamilton
Booz Allen Hamilton is a leading provider of management and technology consulting services primarily to the U.S. government in the defense, intelligence and civil markets. Booz Allen Hamilton is headquartered in McLean, Virginia, employs more than 25,000 people, and had revenue of more than $5 billion in its latest fiscal year.