Almost eight months after becoming an investor in commercial cybersecurity company Tracepoint, consulting firm Booz Allen has announced the exercising of its option to acquire the remaining equity. Booz Allen will gain full control of the industry-leading digital forensics and incident response business, with the terms of the final acquisition not disclosed to the public.
The move cements a proven track record of collaboration between the two organizations, and by leveraging the strengths of both businesses, Booz Allen is likely to further its status as a successful competitor in the global marketplace. The firm retained Goldman Sachs & Co, LLC as the transaction’s financial advisor and King & Spalding, LLP as legal advisor. Tracepoint retained Raymond James & Associates, Inc. as financial advisor and Holland & Knight, LLP as legal advisor.
While the majority of Tracepoint’s customers are in the private sector, the company also sports clients in government, as well as insurance carriers, lawyers, and brokers. The acquisition comes with the intention of fully integrating Tracepoint into Booz Allen’s cyber business by early 2022 as a continuation of the firm’s long-term growth plan to scale up its offerings in cyber incident response, enterprise consulting, and managed services. The integration process will focus on creating additional opportunities and value for both companies, increasing growth and market share while preserving agility and retaining cybersecurity talent.
In the press release, Booz Allen President and CEO Horatio Rozanski stated, “We see strong demand and a clear opportunity as organizations and governments around the globe face increasingly sophisticated cyber threats and believe this is the right time for us to further elevate our incident response capabilities and talent; this transaction aligns with that strategic approach.”
With businesses and government organizations across the globe facing increasingly sophisticated cyber threats from both criminal hacking organizations as well as state-based actors, the move comes at a time of rapidly increasing growth in the cybersecurity market. As organizations continue to migrate legacy systems into cloud-based architecture and leverage technology to expand their offerings to customers and the public, the need to address an ever-growing spectrum of threats will provide a prime opportunity for Booz Allen.