NowVertical Group (TSXV: NOW), a Toronto-based data analytics and AI solutions company, announced May 27 that it sold its Allegient Defense staffing business for consideration of up to US$12.5 million. Allegient specializes in systems engineering and technical assistance program staffing for the US federal government.
The acquirer is BCS, and the new entity post acquisition is BCS Allegient.
BCS said it has a 30-year track record of supporting complex government, research and private sectors clients.
“This strategic move allows us to execute and build on Allegient’s strong opportunity pipeline and backlog,” BCS Allegient CEO Alain Williams said in a press release. “We look forward to leveraging Allegient’s expertise and capabilities to further enhance our service offerings and drive growth in the US federal sector.”
BCS Allegient will focus on energy and defense. Former Allegient Defense CEO Angel Diaz will stay on as chief development officer.
NowVertical acquired Allegient in April 2022, and reported Allegient had revenue of US$17.8 million in 2023.
NowVertical said it could not leverage global capabilities form other parts of its business to support Allegient because of the level of security and the confidential nature of Allegient’s work with the US federal government. Allegient’s clients include the Office of Naval Research and the US Department of Defense.
The $12.5 million total consideration includes $7.5 million cash received on closing, $1.0 million pursuant to a secured promissory note and up to $4.0 million as an earn-out payable on Allegient reaching revenue milestones.