A Charleston technology firm has sold its software services unit to Booz Allen Hamilton, a large management consulting and government contracting business seeking to grow that part of its business.
The financial terms of the sale of the SPARC LLC division were not disclosed. SPARC’s products unit will be operated separately under different ownership.
The deal was announced Monday.
Booz Allen said the newly acquired software business includes about 270 employees who provide services for the U.S. Department of Veterans Affairs and other public- and private-sector clients. The deal is expected to bring additional profits and about $50 million of annual revenue to the buyer.
“This acquisition advances the firm’s long-term strategy, which is focused on ensuring we have the specialized talent and technical capabilities we need to drive growth across our client base,” Booz Allen Hamilton CEO Horacio Rozanski said in a written statement.
The software services group will remain based on Clements Ferry Road near Daniel Island, where it shares space with about 65 Booz Allen employees.
“We have a tremendous pipeline of business at Booz Allen which we need more support for,” said Gary Labovich, the company’s executive vice president of systems delivery. “There are more opportunities than we have people. ... This is not just about buying revenue. ... This is really about gaining expertise and experience and people who have done this kind of work, done it well, who have credentials, and to help us support an ever-increasing pipeline of business.”
The talks began in the middle of the summer, he said.
SPARC has been led by CEO Marc Murphy.
“I think as Gary and I worked through this over the past six months there was a deep focus on allowing us to keep doing what we’re doing well and I think that allows us to contribute to the success of this new combined entity,” Murphy said.
The Charleston company was started in 2009 by Eric Bowman, who said he is no longer with SPARC. In 2013, it was ranked by Inc. 500 as the 14th fastest-growing private company in the U.S. It increased revenue by 26 percent last year, according to a statement.
Booz Allen Hamilton is based in McLean, Va., outside Washington, D.C. It has more than 22,200 employees worldwide, and annual revenue of $5.27 billion in its last fiscal year.
In 2013, the publicly traded firm launched an initiative called “Vision 2020” to identify important growth areas. It said the SPARC purchase came out of that effort.
Reach Allison Prang at (843) 937-5705 or follow her on Twitter @AllisonPrang.