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Booz Allen agrees to buy Ultra I&C Mission Solutions for $720 million, expanding defense tech and software lineup
The Apex Times

THE APEX TIMES

Business/The Apex Times/Jun 22, 8:07 AM EDT

Booz Allen agrees to buy Ultra I&C Mission Solutions for $720 million, expanding defense tech and software lineup

The McLean, Virginia contractor said the deal will add mission software, encryption and edge-compute capabilities to its defense technology portfolio and is expected to close in fiscal 2027.

Booz Allen Hamilton is moving to deepen its technology offerings for national security missions after entering into a definitive agreement to buy Ultra I&C Mission Solutions, a defense software and encryption business, for $720 million. The transaction, announced June 22, positions Ultra Mission Solutions as a wholly owned subsidiary of Booz Allen after the deal closes, which the company expects in the second quarter of Booz Allen’s fiscal year 2027, ending September 30, 2026.

Booz Allen said Ultra Mission Solutions specializes in mission-critical software, encryption and edge-compute products. In its view, the combination is meant to help the U.S. and allied forces integrate commercial technologies into battlefield operations faster and at greater scale, an area where contractors increasingly compete on the ability to connect, secure and run software in challenging environments.

Booz Allen framed the acquisition as part of a broader push to accelerate delivery of defense technology products into national security missions. Horacio Rozanski, Booz Allen’s chairman and chief executive, said the company is “strategically investing” to speed outcomes and maintain U.S. technological superiority, and that integrating Ultra Mission Solutions into its existing defense tech portfolio will strengthen Booz Allen’s ability to build and field commercial products for clients.

The company also expects the deal to lift growth and profitability in the near term. Booz Allen said it expects revenue from the acquisition to grow at a strong double-digit rate for several years, with EBITDA margins well above 20%. It did not provide additional financial targets or segment-level adjustments in the announcement.

Ultra Mission Solutions’ product set, as described by Booz Allen, is built around a modular technology architecture designed for contested or disconnected environments. Its offerings include Apex, ADSI, ACTS, Rain and Knox, which the release said unify command-and-control, or C2, edge compute, secure data movement and encryption into a modular platform.

Booz Allen said it will integrate Ultra’s “mission-ready tech stack” into its own portfolio, which includes AI-driven battle management, resilient communications and edge infrastructure solutions. The release highlighted three Booz Allen products, including the Modular Detachment Kit, or MDK, which is described as a kit for rapidly configuring operational capability in the field; EdgeXtend, positioned as an edge infrastructure solution; and Sit(x), presented as a security-related capability within the company’s technology lineup.

The announcement said the integration is intended to make commercially available solutions more accessible through outcomes-based procurement, Foreign Military Sales, or FMS, and other go-to-market channels. Outcomes-based procurement ties contract payments to delivered results rather than only delivered goods, while FMS is a U.S. government process through which partner nations purchase U.S.-origin defense equipment and services. Booz Allen did not detail which specific contracts or agencies would be prioritized first after closing.

For Ultra Mission Solutions, the buyer’s plan is also a scaling story. Mladen Brkic, president of Ultra Mission Solutions, said the company’s customers “operate where failure isn't an option,” and that joining Booz Allen will bring “greater scale and investment” for employees, products and technologies used in contested conditions.

Transaction partners on the sell-side included Advent, which Booz Allen described as the investor that owns Ultra I&C Mission Solutions through its Cobham Ultra Group portfolio. Steve Escaravage, president of Booz Allen’s defense technology business, said the deal provides a foundation for continued investment in harnessing commercial technology innovation, while Mike Marshall, managing director at Advent, said the company invested in the capabilities that it believes are relevant to next-generation national security missions and sees Booz Allen as a right platform to scale the vision.

Why It Matters

  • The deal reflects how major defense contractors are bundling software, encryption and edge computing to help customers operationalize technology in contested or disconnected settings.
  • If Booz Allen can integrate Ultra’s command-and-control and encryption capabilities into its defense technology lineup, it may strengthen its position in programs that reward modular, rapidly fieldable platforms.
  • Booz Allen’s financial framing, including expectations for double-digit revenue growth and high EBITDA margins, indicates management sees the acquisition as accretive rather than purely strategic.
  • The emphasis on FMS and outcomes-based procurement suggests the company is targeting not only prime-contract awards but also procurement models favored by international and mission-results buyers.

Sources

Key Facts

  • Booz Allen agreed to acquire Ultra I&C Mission Solutions, also known as Ultra Mission Solutions, for $720 million.
  • Ultra Mission Solutions is described as a defense technology provider focused on mission-critical software, encryption, and edge-compute products.
  • Booz Allen expects the deal to close in the second quarter of fiscal 2027, which ends September 30, 2026, subject to customary closing conditions.
  • The company said it expects acquisition revenue to grow at a strong double-digit rate for several years and EBITDA margins well above 20%.
  • After closing, Ultra Mission Solutions will become a wholly owned subsidiary of Booz Allen.
  • Booz Allen said the combined platform is intended for national security clients worldwide and will be accessible through outcomes-based procurement, Foreign Military Sales, and other channels.

Defense Related

Booz Allen agrees to buy Ultra I&C Mission Solutions for $720 million, expanding defense tech and software lineup | The Apex Times