{"id":35507,"date":"2022-08-08T19:15:57","date_gmt":"2022-08-08T19:15:57","guid":{"rendered":"https:\/\/one.sightlinemg.com\/c4isrnet\/uncategorized\/2022\/08\/08\/booz-allen-says-acquisition-aimed-at-lockheed-raytheon-billions-in-contracts\/"},"modified":"2026-08-08T00:35:34","modified_gmt":"2026-08-08T00:35:34","slug":"booz-allen-says-acquisition-aimed-at-lockheed-raytheon-billions-in-contracts","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/c4isrnet\/industry\/2022\/08\/08\/booz-allen-says-acquisition-aimed-at-lockheed-raytheon-billions-in-contracts\/","title":{"rendered":"Booz Allen says acquisition aimed at Lockheed, Raytheon, \u2018billions\u2019 in contracts"},"content":{"rendered":"\n

WASHINGTON \u2014 Booz Allen Hamilton, the 22nd largest U.S. defense contractor by revenue in the latest Defense News ranking, said it needs to buy cyber firm EverWatch to compete with larger rivals like Lockheed Martin and Raytheon Technologies.<\/p>\n\n\n\n

In court filings tied to a U.S. Department of Justice antitrust lawsuit<\/a> that seeks to block the merger, Booz Allen said it identified 14 opportunities to unseat competitors and win lucrative government contracts alongside EverWatch, whose services are used by intelligence and defense agencies.<\/p>\n\n\n\n

The Justice Department alleges the combination would jeopardize market competition, harm taxpayers and crimp services supplied to the National Security Agency. The merger, the government said in its June complaint, would specifically imperil a signals intelligence and simulation contract known as Optimal Decision. Booz Allen and EverWatch are thought to be the only serious bidders, meaning a merger would produce a monopoly, the government said.<\/p>\n\n\n\n

But attorneys for Booz Allen<\/a> told the court the merger would actually stimulate competition and allow it to take on bigger, entrenched companies.<\/p>\n\n\n\n

\u201cThe government\u2019s narrative is not only inaccurate \u2014 it makes no sense,\u201d the attorneys said in documents filed Aug. 1 in Maryland federal court. \u201cAs a matter of basic math, the government\u2019s suggestion that the proposed transaction is a \u2018scheme\u2019 to buy off competition for OD is bizarre.\u201d<\/p>\n\n\n\n

The 14 potential procurements are worth \u201cbillion of dollars\u201d and are the driving force behind the proposed transaction, not the \u201crelatively small\u201d Optimal Decision work<\/a>, they said.<\/p>\n\n\n\n

EverWatch, owned by Maryland-based investment firm Enlightenment Capital, supplies artificial intelligence, cloud capabilities, data science, insider-threat analysis and other products and technologies. It is smaller than Booz Allen, which employs some 30,000 people.<\/p>\n\n\n\n

Booz Allen ranked No. 22 in overall defense revenue in 2021, at $5.5 billion, according to the Defense News ranking<\/a>, developed using information provided by the companies as well as annual reports, analyst expertise and outside research.<\/p>\n\n\n\n

Lockheed and Raytheon sat at No. 1 and No. 2, respectively, on the Defense News list. Lockheed recorded roughly $64.5 billion in defense revenue in 2021; Raytheon, $41.9 billion.<\/p>\n\n\n\n

An inquiry made to EverWatch<\/a> on Aug. 8 was not immediately answered. To what degree the merger would effect revenue was not clear.<\/p>\n\n\n