NEW HARTFORD, N.Y. - PAR Technology Corporation (NYSE: PAR), a leading provider of enterprise foodservice technology, has completed the divestiture of its Government operating segment, which includes the sale of its wholly owned subsidiaries PAR Government Systems Corporation (PGSC) and Rome Research Corporation (RRC). The total transaction value is reported to be $102 million.
The company finalized the sale of PGSC to Booz Allen (NYSE:BAH) Hamilton Inc. (NYSE: BAH) on Thursday, in a deal that was both signed and closed on the same day. Additionally, a definitive agreement has been reached for NexTech Solutions Holdings, LLC (NTS) to acquire RRC, with the transaction expected to conclude by the end of the second quarter of 2024.
Savneet Singh, Chief Executive Officer of PAR Technology, described the sales as a significant step toward the company's aspiration to be the preeminent technology provider for enterprise foodservice globally. Singh remarked that the transactions with Booz Allen Hamilton and NexTech Solutions are strategically sound, ensuring a smooth transition and positioning PGSC and RRC for future success.
The divestiture is in line with PAR’s strategy to offload non-core assets and reallocate capital to areas anticipated to yield the highest returns. This move is expected to sharpen the company's focus on its core restaurant technology business.
Financial advisory services for PAR Technology in the sale were provided by Baird and legal advice by Gibson, Dunn & Crutcher LLP. Booz Allen Hamilton was advised by Jefferies LLC and King & Spalding LLP.
PAR Technology has been a prominent force in the restaurant technology sector for over four decades, offering comprehensive hardware, software, and service solutions. Its products are utilized by more than 95,000 restaurants across over 110 countries.
This article is based on a press release statement from PAR Technology Corporation.
In other recent news, Booz Allen Hamilton has garnered attention from several financial firms due to its strong performance and growth prospects. The company's fourth-quarter fiscal year 2024 results revealed robust growth, particularly in its Defense and Civil segments, leading Truist Securities to increase its price target from $145 to $160. Additionally, the firm's revenue guidance for fiscal year 2025 surpassed analyst expectations, bolstered by a broad portfolio and a qualified pipeline valued at $64 billion.
Wells Fargo (NYSE:WFC) has also revised its outlook on Booz Allen Hamilton, raising the price target to $169 from the previous $158, following the company's surpassing of long-term growth projections. The firm has revised its earnings per share (EPS) estimate for fiscal year 2025 to $6.26, up from $5.95, and for fiscal year 2026 to $6.76 from $6.60.
TD Cowen has expressed optimism about the company's fiscal year 2025 prospects, raising the stock target from $158 to $177. The firm expects Booz Allen Hamilton to experience growth throughout the year, driven by strong demand and supply dynamics. The company's adjusted EBITDA margins are expected to remain stable or improve from fiscal year 2024's 11.0%.
Stifel has also increased its stock price target for Booz Allen Hamilton from $170 to $175 following the announcement of the company's fourth-quarter adjusted EPS of $1.33. The company's projected adjusted EPS for fiscal year 2025 sits between $5.80 and $6.05, with sales growth at a 9.5% midpoint. These recent developments highlight Booz Allen Hamilton's strong financial performance and promising future prospects.
InvestingPro Insights
As PAR Technology Corporation streamlines its focus on the restaurant technology sector, it's worth noting the recent performance of Booz Allen Hamilton Inc. (NYSE: BAH), the company acquiring PAR's Government operating segment. Booz Allen Hamilton stands out with a robust track record and positive analyst sentiment.
InvestingPro Tips indicate that Booz Allen Hamilton has not only raised its dividend for 8 consecutive years but also maintains a consistent record of dividend payments for 13 consecutive years. This showcases the company's commitment to returning value to shareholders and its stable financial health.
Moreover, analysts have revised their earnings upwards for the upcoming period, reflecting optimism in the company's future performance. Such revisions typically indicate potential strength in the company's earnings prospects and may influence investor expectations.
In terms of valuation, Booz Allen Hamilton is trading at a low P/E ratio relative to near-term earnings growth, suggesting it may be undervalued compared to its growth potential. This could be an attractive point for investors seeking growth at a reasonable price.
InvestingPro Data highlights a market capitalization of $19.62 billion, with a P/E ratio of 32.87. The company's revenue growth over the last twelve months as of Q4 2024 stands at an impressive 15.15%, indicating a strong expansion of its business operations.
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