BigBear.ai Strengthens Position With $250M Ask Sage Acquisition

BigBear.ai Holdings, Inc. BBAI has completed its previously announced acquisition of Ask Sage, a fast-growing generative AI platform that enables the secure deployment of AI models and agentic AI capabilities. Following the news, shares of BBAI are up more than 5% in pre-market trading today.

Ask Sage is purpose-built for defense and national security agencies, as well as other highly regulated sectors. The transaction, valued at approximately $250 million in cash, was announced on Nov. 10, 2025, in conjunction with the company’s third-quarter earnings release.

The Ask Sage acquisition strengthens BigBear.ai’s position in secure, mission-ready generative AI for defense and other highly regulated markets. By combining Ask Sage’s scalable platform with BigBear.ai’s mission expertise, the company is better positioned to capitalize on the growing demand for trusted, production-ready AI solutions.

BBAI’s Financially Accretive Transaction

The Ask Sage acquisition is expected to be financially accretive for BigBear.ai, adding a fast-growing, recurring revenue stream while enhancing scale and operating leverage. Ask Sage is projected to generate approximately $25 million in annual recurring revenues (ARR) in 2025, representing a nearly sixfold year-over-year increase, and brings a proven platform already deployed across more than 100,000 users in mission-critical environments.

Strategically, the deal further expands BigBear.ai’s addressable market in defense, intelligence and other highly regulated sectors; supports cross-selling across its customer base; and strengthens the company’s ability to deliver secure, production-ready AI solutions with durable long-term growth potential.

BBAI’s Inorganic Growth Strategy

Strategic M&A is a core pillar of BigBear.ai’s growth strategy, complementing organic expansion while reinforcing its leadership in national security and other highly regulated markets. During the third-quarter earnings call, management underscored its intent to strengthen the company’s position through disciplined M&A, marked by a deliberate process that includes market scouting, evaluation of emerging AI technologies and alignment around a clear value-creation thesis.

BigBear.ai has developed a structured, thesis-driven M&A framework in which each transaction is designed to advance its mission, sharpen differentiation and generate long-term value. The acquisition of Ask Sage exemplifies this approach, reflecting management’s focus on targets with proven, scalable platforms, strong recurring revenue profiles and deep security accreditations that create durable competitive advantages.

BBAI’s Stock Performance

Shares of the company have gained 19.2% in the past year, outperforming the Zacks Computers - IT Services industry’s 18.3% decline. This outperformance reflects BigBear.ai’s growing momentum across its core national security and travel and trade markets, alongside continued expansion into international arenas. The company’s strategy to diversify its pipeline, deepen partnerships and demonstrate execution at scale is increasingly translating into measurable results.

As defense and national security agencies increasingly prioritize generative and agentic AI to enhance operational effectiveness, decision-making and mission readiness, demand for secure, production-grade AI platforms is accelerating. Ask Sage’s established deployments in classified and highly regulated environments highlight this trend, positioning BigBear.ai to benefit from rising government investment in next-generation AI capabilities.

BBAI’s Zacks Rank & Other Key Picks

Currently, BigBear.ai carries a Zacks Rank #2 (Buy).

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