Defense Technology Expansion
Booz Allen Hamilton Acquires Ultra I&C Mission Solutions for $720 Million, Boosting Defense Tech
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Key Points
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In the company’s SEC filing, Booz Allen states the stock purchase agreement was entered on June 19, 2026. The “Acquiror” is a wholly-owned subsidiary of Booz Allen Hamilton Holding Corp., which will buy all issued and outstanding equity interests of Ultra Electronics Advanced Tactical Systems, Inc. from Ultra I&C Holdings Limited and Ultra Electronics Holdings Limited, for $720 million subject to adjustments.
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TradingView’s deal summary adds that closing is subject specifically to HSR clearance (in addition to other customary conditions) and that Booz Allen expects to fund the acquisition using its existing liquidity and financing options.
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GuruFocus reports management’s expected financial profile from the deal: an anticipated revenue boost with “strong double-digit growth” and EBITDA margins “exceeding 20%.”
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Seeking Alpha notes early trading reaction and deal context, saying Booz Allen shares were up about 1.7% pre-market and describing the seller business as an “Advent portfolio company.”
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For investors, GuruFocus provides specific valuation/risk metrics: an Altman Z-score of 3.8 (framed as suggesting low bankruptcy risk) and a P/E ratio of 9.63 described as “significantly lower than its historical averages,” supporting an undervaluation argument.
Booz Allen Hamilton agreed on June 19, 2026, to buy Ultra I&C Mission Solutions from Cobham Ultra Group for $720 million, the company said in an SEC filing. The deal adds software, encryption, and edge computing — processing data close to the battlefield rather than on distant servers — to Booz Allen's defense portfolio, according to MarketWatch.
Booz Allen shares rose 1.7% in pre-market trading after the announcement, Seeking Alpha reported. The company expects the deal to close in the second quarter of its fiscal year 2027, with a hard deadline of December 19, 2026, before either side can walk away.
What Booz Allen Is Actually Buying for $720 Million
The target is Ultra Electronics Advanced Tactical Systems, Inc. — a unit of Cobham Ultra Group, which is owned by private equity firm Advent International. CityBiz described the seller as an "Advent portfolio company." Booz Allen's SEC filing shows it will buy all outstanding equity interests through a wholly-owned subsidiary, with the $720 million price subject to certain adjustments.
Ultra's Mission Solutions unit specializes in edge-to-cloud connectivity and software-defined encryption — tools used for secure, real-time battlefield communications. Booz Allen said the purchase expands its offerings for national security missions. The company plans to fund the deal using existing cash and financing options, Investing.com reported.
Management Expects Strong Margins and Double-Digit Revenue Growth
Booz Allen's management projects the acquired unit will deliver "strong double-digit growth" in revenue, according to GuruFocus. EBITDA margins — a measure of operating profit — are expected to exceed 20%. If those targets hold, the deal should add to Booz Allen's earnings per share by late fiscal 2027.
The deal must first clear the Hart-Scott-Rodino antitrust review, a standard regulatory step for large mergers. The Department of Justice or Federal Trade Commission could request more information before approving. Booz Allen set December 19, 2026, as the termination date if the deal has not closed by then.
Analysts Frame Booz Allen as Undervalued Ahead of the Deal
GuruFocus highlighted two key numbers for investors. Booz Allen's P/E ratio — the price investors pay for each dollar of earnings — sits at 9.63, which the outlet called "significantly lower than its historical averages." Its Altman Z-score, a measure of financial health, is 3.8, placing it in what analysts call the "safe zone" for bankruptcy risk.
Those metrics suggest Booz Allen is buying a high-growth asset from a position of financial strength rather than stretching its balance sheet. The acquisition follows a broader industry push driven by the Pentagon's goal of linking all military branches through real-time data sharing — an initiative known as JADC2, or Joint All-Domain Command and Control.
A Private Equity Exit Reshapes the Defense Tech Landscape
For Advent International, the $720 million sale is a profitable carve-out. Advent took Ultra Electronics private in 2021–2022 for roughly £2.6 billion, merging it with Cobham. By selling off the Mission Solutions unit to Booz Allen, Advent is cashing out one piece of that larger bet. Critics of defense industry consolidation warn that deals like this shrink the pool of specialized vendors the Pentagon can turn to.
For Booz Allen, the logic is clear. The firm has spent years moving away from pure advisory work toward owning the actual technology. Adding Ultra's encryption and edge computing tools means Booz Allen no longer just recommends solutions — it controls the infrastructure, according to MarketWatch.
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