The McLean Group Advises SPARC in the Acquisition of its Software Services Business by Booz Allen Hamilton
MCLEAN, VA – November 2015 – SPARC, LLC (SPARC) headquartered in Charleston, SC, sold its software services unit to Booz Allen Hamilton (Booz Allen) to support the firm’s growing capabilities in Agile software development. The McLean Group’s Aerospace, Defense & Government Services (ADG) practice served as the exclusive transaction advisor to SPARC.
Booz Allen acquired the unit, its assets, and about 270 staff who currently provide software development services for the Department of Veterans Affairs and additional public and private sector clients. The acquisition of SPARC will expand and enhance Booz Allen’s ability to integrate technical and mission-related requirements to deliver technologies like cloud, mobile and modular services using contemporary methodologies such as Agile, DevOps and open source.
SPARC’s services group’s revenue grew by 26 percent in 2014 and was ranked by Inc. 500 as the US’ 14th fastest-growing private company in 2013. In Booz Allen’s fiscal year 2017, the transaction is expected to be accretive to earnings and add approximately $50 million of incremental annual revenue. SPARC’s products unit will continue to operate separately under different ownership. The acquisition is part of Booz Allen’s long-term growth strategy, called Vision 2020, to build its systems delivery business. This investment initiative is driven by client demand for rapid technology innovation in areas such as cloud, big data and mobility; advanced development methodologies and a demand for faster deployments.
“The opportunity to join a firm like Booz Allen that so strongly values our expertise, shares our focus on culture, and offers the chance to expand into new areas of client work is an exciting development for the SPARC team, and we look forward to accomplishing great things together,” said SPARC Chief Executive Officer Marc Murphy.
He continued, “The McLean Group led us to find a firm that met all of our goals. The trust we placed in them proved to be a great decision as their expertise in the federal contracting M&A industry proved invaluable and their entire team was incredibly professional across the board.” This deal is another example of The McLean Group’s commitment to providing expert advice to federal contracting companies seeking to navigate M&A opportunities. The firm’s ADG practice leaders have advised on more than 150 government sector transactions with cumulative deal value exceeding $4 billion, including an industry-leading 53 transactions closed since 2010.
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About The McLean Group
The McLean Group is a leading independent investment bank that provides mergers and acquisitions (M&A), debt and equity recapitalizations, business valuation and strategic consulting services to middle market companies. The firm’s Aerospace, Defense & Government Services (ADG) team is one of the largest dedicated groups in the country and has deep transactional expertise in nearly every segment of the government market.
The firm’s transaction advisory and valuation services reflect comprehensive industry knowledge, extensive transactional successes, commitment to providing senior-level attention to every client engagement, and real-time understanding of industry-specific valuation drivers.