US government-focused management and technology consultancy Booz Allen Hamilton’s majority shareholder Carlyle Group has sold a 10% stake in the company for US$130.5m.
The private equity firm sold 7,350,000 class A common shares for US$17.75 each to…
US government-focused management and technology consultancy Booz Allen Hamilton’s majority shareholder Carlyle Group has sold a 10% stake in the company for US$130.5m.
The private equity firm sold 7,350,000 class A common shares for US$17.75 each to its underwriter, Barclays Capital. The purchase price is a slight discount to the US$18.28 trading price of Booz’s shares on 12 February, the date the parties entered into the underwriting agreement.
Following the transaction, Carlyle’s holding in Booz has fallen from 58.3% to 53%.
The sale comes just three months after the sponsor sold 12.65 million Booz shares in an upsized offering that raised US$215m.
Bookrunners on that deal were Barclays, Credit Suisse, Morgan Stanley, BofA Merrill Lynch, Citigroup and JP Morgan.
And the sponsor is considering cutting its holding even further. Speaking on its full year 2013 results earnings call, Carlyle founder and co-chief executive officer Bill Conway, said: “As you know, we’ve already done sales of Booz Allen this year. I think that so far we would say that although there’s been some volatility, the markets are still pretty receptive and we’re able to do transactions and get some exits. I think that is going to continue. I certainly hope it does.”
Carlyle acquired Booz Allen’s government-consulting business in a US$2.5bn LBO back in mid-2008. In late 2010, Booz was listed on the New York Stock Exchange and the sponsor cut its stake to 69%.
