BCS, LLC acquired Allegient Defense, Inc. from NowVertical Group Inc. (TSXV:NOW) for approximately $12.5 million on May 27, 2024. As reported, the $12.5 million of consideration for the transaction consists of $7.5 million in cash received on closing, $1.0 million pursuant to a secured promissory note issued to NOW at closing and payable in installments within 18 months of closing and up to $4.0 million as an earn-out, payable on Allegient achieving certain revenue milestones. In 2023, Allegient reported revenue of $17.8 million and an income from operations margin of 8% with $1.4 million income from operations.

Following the closing, BCS and Allegient Defense will merge to form a new entity called BCS Allegient and will be led by current BCS Chief Executive Officer Alain R. Williams. Angel Diaz, the current Allegient Defense Chief Executive Officer will stay on as Chief Development Officer and will focus on growth and business development for the new entity. The disposition clears $3.8 million of debt from NOW?s balance sheet, significantly reducing overall debt liabilities. The sale helps reduce deferred liabilities, improving NOW's financial health. Proceeds from the disposition support NOW's growth plans for its integrated business, enabling strategic investments in core areas.

BCS, LLC completed the acquisition of Allegient Defense, Inc. from NowVertical Group Inc. (TSXV:NOW) on May 27, 2024.