Leading strategy and technology consulting firm Booz Allen Hamilton Inc has announced the completion of the previously-announced separation of its US government and global commercial businesses, as well as the sale of a majority stake in the US government consulting business, to The Carlyle Group for $2.54 billion.

On 16 May Booz Allen Hamilton had announced that it would separate its US government and global commercial businesses, selling a majority stake in the US government business to The Carlyle Group, to enable the consulting firm's two businesses to refocus on their distinct end markets through this strategic realignment.

With the completion of the strategic realignment, Booz Allen, led by current chairman and CEO Dr Ralph Shrader, will focus on serving its US government clients.

''Completing this separation of our two core businesses is an important milestone in our history," said Shrader. "The success of these businesses over many decades and the significant opportunities that lie ahead for both are a tribute to generations of Booz Allen people and clients. Looking ahead, we are excited about Carlyle's investment and the ability to leverage their experience in our growing US government consulting business, and we look forward to continuing to collaborate with our Booz & Company colleagues on assignments where our joint capabilities benefit clients."

With Carlyle's investment, Booz Allen's commercial business will form a stand-alone company, which will be owned and operated by the commercial officers and will stay focused on global management consulting.

 ''Booz Allen is already a clear leader in the management consulting industry, with a powerful reputation, enviable client base, strong financial position, and unwavering commitment to serving the senior agenda of the world's leading institutions," said Dr. Shrader. "As a stand-alone company, the new commercial and international business will have greater agility to meet the needs of its client base, maximise its potential, and realize significant growth across the globe,'' he added.

The divested business will will retain the name Booz Allen Hamilton, while the firm's commercial and international businesses will operate as Booz & Company, which was formed om 21 May, with London-based Shumeet Banerji, formerly president of the firm's global commercial business, elected as CEO, and Joe Saddi, based in the Middle East, the chairman of the new organisation's 16-member board of directors.

Banerji, said, "This is an exciting time for us, as an independent company and also as a leader in global management consulting. We look forward to continuing our long history of serving the senior agenda of the world's leading institutions -- and teaming with our legacy partner Booz Allen Hamilton when our combined expertise helps our clients succeed."

The divested Booz Allen expects to maintain its position as a leading provider of management consulting, engineering, information technology, and systems development and integration services supporting mission-critical programmes for the US government. Headquartered in McLean, Virginia, Booz Allen's US government business has more than 18,000 employees in 80 offices worldwide, generating annual net revenues in excess of $2.7 billion.

While announcing plans to demerge the two businesses as independent entities, Shrader had said, ''For 94 years, Booz Allen has adapted and evolved as market realities have changed and our areas of expertise have grown. We continually evaluate whether we have in place the best strategy and structure to succeed and deliver the highest quality service to our government and commercial clients, which is our top priority.''

The separation and investment by Carlyle was overwhelmingly approved by Booz Allen Hamilton Inc.'s shareholders.

Peter J. Clare, Carlyle managing director and head of the global aerospace, defense and government services sector team, said, "We look forward to supporting Ralph Shrader and his management team as we enter this new and important phase of Booz Allen's leadership in the government services sector."  According to Clare, Carlyle will "maintain the unique culture that has made Booz Allen so successful.'' Clare had previously been quoted as saying, "The partners of Booz Allen have built a world-class business and brand focused on providing critical services to government clients.

Booz Allen was advised by Credit Suisse and Latham & Watkins. Carlyle was advised by Debevoise & Plimpton LLP.