Jacobs Strengthens its Mission-Critical Cyber Solutions With a New Acquisition

Dallas-based Jacobs, which just released its fiscal fourth quarter and fiscal year ended financial results, will strengthen its cyber artificial intelligence capabilities by acquiring The Buffalo Group. Jacobs generated $807 million in fiscal 2020 cash flow from operations and $689 million of free cash flow.

Dallas-headquartered technical professional services firm Jacobs has made an acquisition that it hopes will strengthen its portfolio of mission-focused government solutions in the cyber domain and Intelligence Community.

The Buffalo Group, a Virginia-based provider of advanced cyber and intelligence solutions, will offer Jacobs a set of analytic and technology capabilities with the acquisition. Terms of the deal were not disclosed.

The Buffalo Group is known for supporting a number of key missions for agencies in multiple domains across the Department of Defense and Intelligence Community. It’s a strategic move for Jacobs, which aims to solve the world’s most critical problems by challenging today to reinvent tomorrow.

The mission-critical solutions that The Buffalo Group is behind solve complex national priorities and security challenges, per a news release. That involves a diverse range of missions in various areas: advanced analytics, advanced targeting, cybersecurity, cloud mitigation, DevSecOps, identity intelligence and biometrics, human intelligence, open-source and social media analysis, geospatial intelligence, and more.

In joining Jacobs, The Buffalo Group’s team will be able to deliver even more of these innovative technologies and capabilities, its president, Paul Courtney, said in a statement. It’s a technical, cultural and philosophical fit—both companies have records of delivering cutting-edge tech that drives critical business outcomes.

“Defending our nation against adversarial threats is growing in complexity,” Jacobs Chair and CEO Steve Demetriou said in a statement. “Like Jacobs, The Buffalo Group has a proven track record of winning multibillion-dollar full and open enterprise contracts. Under the leadership of Caesar Nieves as head of our new Cyber and Intelligence business, the combination of Jacobs and The Buffalo Group will provide additional opportunities across the Intelligence Community, Combatant Commands, and the U.S. Army.”

The move completes a big year for Jacobs, which also recently announced its fiscal fourth quarter and fiscal year ended financial results.

Jacobs generated $807 million in fiscal 2020 cash flow from operations and $689 million of free cash flow. In Q4, Jacobs’ revenue of $3.5 billion grew 3.7 percent year-over-year, with a net revenue up 2 percent pro forma. This past fiscal year, Jacobs had a total revenue growth of 6.5 percent and a pro forma net revenue growth of 2.5 percent.

“Our strong FY20 results and solid FY21 outlook demonstrate the mission-critical nature of our solutions, and when combined with the diversity of our end markets, enables us to thrive in varying economic environments. The pandemic has served as a catalyst for us to materially accelerate our digital vision and quickly pivot to an effective virtual workforce,” Demetriou said. “At Jacobs, our mindset of continuously challenging today to reinvent tomorrow has enabled us to capitalize on enhanced technologies, positioning us for sustainable, long-term growth.”

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