US Judge Refuses To Block Booz Allen Hamilton's Acquisition Of Rival Cybersecurity Company

US Judge Refuses To Block Booz Allen Hamilton's Acquisition Of Rival Cybersecurity Company
  • A federal judge in Maryland declined to halt Booz Allen Hamilton Holding Corp's BAH acquisition of a competing cybersecurity company EverWatch, scoring a victory against the Department of Justice.
  • The judge ordered the two sides to report back on the next steps of the case.
  • Booz Allen in March moved to acquire EverWatch, a company it had been competing against to win a five-year contract to support the National Security Agency's mission of collecting foreign communications, the Wall Street Journal reported.
  • The DOJ prosecuted in June, alleging that the acquisition would drive up prices for the U.S. government and create a monopoly supplier for critical national-security services.
  • Booz Allen is a government contractor that provides management and technology consulting services. EverWatch builds systems to defend against national cyber threats.
  • Booz Allen said at the time the DOJ filed its lawsuit in June that authorities were wrong about the deal, which the company said would benefit its government customers.
  • Cybersecurity stocks assumed growing importance since companies became targets of attacks as the world moved online. It also became a lethal weapon to win wars.
  • In September, Microsoft Corp MSFT security chief Charlie Bell highlighted the importance of innovation of machine learning algorithms for better cybersecurity solutions.
  • Price Action: BAH shares closed lower by 0.24% at $96.49 on Tuesday.
  • Photo by Capri23auto from Pixabay

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