Booz Allen Hamilton sells riskCanvas Holdings LLC to New York-based Genpact

Jan. 10, 2019: Booz Allen Hamilton Inc. has sold a practice it formed around an anti-money laundering software product pitched to financial institutions. RiskCanvas Holdings LLC is now part of Genpact, a global professional services firm based in New York. Terms of the deal, announced on Tuesday, Jan. 8, 2019, weren’t disclosed. The riskCanvas product and the startup’s consulting services are seen positioning Genpact in a market being roiled by rising regulatory compliance expectations as well as automation, analytics and digital technologies. Banks and other financial entities will need to transform their financial crime compliance operations to remain competitive, executives say. Ex-Booz Allen Principal Joseph Gillespie said in a statement that the move to Genpact will help riskCanvas serve a broader swath of clients in search of anti-money laundering solutions. For McLean, Virginia-based Booz Allen, this is an instance of portfolio shaping. RiskCanvas was the brainchild of a financial compliance practice team at the $6.4 billion company and it has emphasized nurturing that kind of innovation in-house. Its commercial business priorities changed, however, “and this practice no longer aligned to the scope of these changes — which limited the sales channels and investments that the group needed to realize its full potential at Booz Allen,” Spokesman James Fisher said in a statement. “We concluded that the best option was to sell this business to a company that would keep the team and leadership intact and demonstrate a commitment to the growth of the team and that business,” he added. Booz Allen’s commercial focus has been on cybersecurity, which spurred company officials to acquire a cyber startup in October, 2017. The commercial business’s client base includes twenty-nine of the Fortune 100 and while its revenue drives a small percentage of Booz Allen’s overall sales, that percentage has been growing. Genpact was formed in 1997 as a business unit at General Electric, and Genpact became an independent company in January, 2005.

Attribution: The Washington Business Journal

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