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KippsDeSanto & Co. advises The AEgis Technologies Group, Inc. (“AEgis”) on its sale to Arlington Capital Partners

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KippsDeSanto & Co. advises The AEgis Technologies Group, Inc. (“AEgis”) on its sale to Arlington Capital Partners

KippsDeSanto & Co. is pleased to announce the sale of its client, The AEgis Technologies Group, Inc. (“AEgis” or the “Company”), to Arlington Capital Partners.

Headquartered in Huntsville, AL, AEgis is a leading provider of advanced engineering and technology solutions to Department of Defense (“DoD”) and National Security customers.  AEgis’ solutions span a variety of applications to include space communications, complex weapons systems, Command, Control, Communications, Computers, Intelligence, and Reconnaissance (“C4ISR”), modeling and simulation, and directed energy.  In order to address next generation warfighter readiness requirements, the Company has also developed a proprietary suite of augmented and virtual reality and simulation training solutions.  AEgis has a long-standing history supporting a diverse base of high-profile and well-funded government customers, including the U.S. Army, Missile Defense Agency (“MDA”), and the U.S. Air Force.

We believe this investment demonstrates several key trends in the government technology environment:

  • Strong demand for advanced, technology-driven engineering solutions backed by Company-owned intellectual property
  • Interest in Companies with deep and tenured past performance across a diversified base of sought after and well-funded DoD and national security customers
  • Buyer focus on strategic alignment with high-priority and forward-looking mission areas such as space, C4ISR and directed energy.
  • Financial sponsors continue to deploy capital in the government services market through new platform investments and bolt-on acquisitions to existing portfolio companies, particularly for those assets with long-term contracts and strong management teams

About KippsDeSanto & Co. KippsDeSanto & Co. is an investment banking firm focused on serving growth-oriented Aerospace / Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity, and industry experience.  We help market leaders realize their full strategic value.  Having advised on over 100 industry transactions, KippsDeSanto is recognized for our analytical rigor, market insight, and broad industry relationships.  There’s no substitute for experience. For more information, visit www.kippsdesanto.com.

Press Release

Arlington Capital Partners Announces Investment in AEgis Technologies

WASHINGTON — Arlington Capital Partners, a Washington, DC-based private equity firm, announced that it has agreed to make a majority investment in AEgis Technologies. Headquartered in Huntsville, Alabama, AEgis provides advanced engineering and technology expertise to customers in the National Security community. Jonathan Moneymaker, a veteran government contracting executive with over 20 years of national security and technology experience, will join the Company as Chief Executive Officer and serve on the Board of Directors.

David Wodlinger, a Partner at Arlington, said, “AEgis has established itself as a preeminent provider of differentiated solutions that address critical national security objectives in the domains of space superiority, directed energy, and missile defense. We are partnering with AEgis to increase investment in these core areas to deliver impactful innovations to our customers that are working on these evolving, high priority missions.”

“Throughout AEgis’ nearly 30-year history, our employees have strived to develop innovative technical solutions for the military so that our warfighters can come home safely,” said Steve Hill, Co-Founder of AEgis. “We have found a partner in Arlington that will remain committed to this mission as the Company enters its next phase of growth.”

Hill will remain a substantial shareholder in AEgis and will continue to provide strategic guidance to the Company as a member of the Board of Directors.

“I’m thrilled to join the AEgis family and partner with Arlington on building their newest platform. AEgis’ growth has been remarkable and is a testament to the deep mission intimacy and differentiated solutions the Company delivers to its national security customers,” Moneymaker said. “I look forward to working with our talented management team and dedicated employees as we continue to drive growth and execute the vision of becoming a first-class provider of national security technology across our customers’ most critical and fastest growing domains of warfare.”

Moneymaker was most recently President of Altamira Technologies, a provider of engineering and analytical solutions to the Defense and Intelligence communities, where he led the company through a period of transformational growth. Prior to that, he was General Manager of the Intelligence Systems Group at Boeing where he was responsible for more than 1,000 employees providing specialized services to the Intelligence and Special Operations communities.

Henry Albers, a Vice President at Arlington, said, “AEgis has built a reputation for technical excellence and commitment to the mission, making the Company an employer of choice for high caliber professionals. We are excited to partner with Jonathan and the AEgis management team to build on that tradition and accelerate the Company’s growth by investing in internal research and development as well as pursuing strategic acquisition opportunities.”

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KippsDeSanto & Co. advises BEI Precision Systems & Space Company on its acquisition of Wenzel Associates, Inc.

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KippsDeSanto & Co. advises BEI Precision Systems & Space Company on its acquisition of Wenzel Associates, Inc.

KippsDeSanto & Co. is pleased to announce the acquisition of Wenzel Associates, Inc., by our client, BEI Precision Systems & Space Company, Inc. (“BEI Precision”), a portfolio company of J.F. Lehman & Company (“JFLCO”).

Headquartered in Austin, Texas, Wenzel is at the forefront in the design and manufacture of crystal oscillators, fixed frequency systems, integrated microwave assemblies, and synthesizers for military, space, and commercial applications.  This marks the second acquisition BEI Precision has made since it was acquired by JFLCO in April 2017, and further solidifies BEI Precision’s robust portfolio of high-end positioning sensor solutions.

Similar to BEI Precision, Wenzel products are differentiated via their ability to provide the highest performance (e.g., lowest phase noise) reliably in extreme environments. Wenzel’s oscillators are key components on numerous military and space platforms, typically on a sole source basis. Notable examples of Wenzel’s past work include providing space-flight hardware for the Lunar Reconnaissance Orbiter for NASA, as well as oscillators for the Mars Pathfinder Lander and the National Polar-orbiting Operational Environmental Satellite System (“NPOESS”).  Currently, Wenzel is engaged to supply oscillators for numerous radar and electronic warfare systems found on high-profile aviation, land and naval platforms. BEI Precision intends to leverage Wenzel’s position on these noteworthy programs to further penetrate existing and tangential customer opportunities.  The acquisition of Wenzel further deepens BEI Precision’s existing base of high-end engineering talent, along with offering additional manufacturing and testing capabilities in Austin.

About KippsDeSanto & Co. KippsDeSanto & Co. is an investment banking firm focused on serving growth-oriented Aerospace / Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity and industry experience.  We help market leaders realize their full strategic value.  Having advised on over 100 industry transactions, KippsDeSanto is recognized for our analytical rigor, market insight, and broad industry relationships.  There’s no substitute for experience. For more information, visit www.kippsdesanto.com.

Press Release

BEI Precision Announces Acquisition of Wenzel Associates, Inc.

October 23, 2019

NEW YORK – BEI Precision Systems & Space Company, Inc. (“BEI Precision”), a portfolio company of investment affiliates of J.F. Lehman & Company (“JFLCO”), announced today the recent acquisition of Wenzel Associates, Inc. (“Wenzel”).

Headquartered in Austin, Texas, Wenzel is a leading designer and manufacturer of crystal oscillators, fixed frequency systems, integrated microwave assemblies and synthesizers for military, space and commercial markets. Since 1978, Wenzel has defined the state-of-the-art in ultra-low phase noise crystal oscillators, manufacturing products that are capable of highly reliable and precise performance in extreme environments. Wenzel is supported by its Croven Crystals division in Whitby, Ontario, which supplies precision quartz resonators with extremely low noise and low sensitivity to vibration. Wenzel is the second add-on acquisition completed by BEI Precision under JFLCO’s sponsorship.

BEI Precision is a leader in high-accuracy positioning sensor technologies, providing advanced design, manufacturing and testing for reliable and resilient products and systems. BEI Precision’s core product lines, which are used primarily in mission-critical defense and space applications, include optical encoder-based and resolver-based positioning systems, scanners for situational awareness requirements and precision accelerometers. BEI Precision is headquartered in Maumelle, Arkansas with an operating subsidiary in Edinburgh, Scotland, and has a longstanding track record of technological innovation, with corporate roots dating back to 1862.

Mark Mirelez, Chief Executive Officer of BEI Precision, commented, “Our partnership with Wenzel will further strengthen both organizations’ abilities to meet the unique and evolving requirements of our customers, particularly in the space and military markets.”

“The Wenzel acquisition further enhances BEI Precision’s reputation as a provider of the highest-performance advanced sensing and positioning solutions for critical applications,” said Steve Brooks, Partner at JFLCO. “We are excited to welcome Wenzel and its strong engineering-focused culture to the BEI Precision platform,” added Will Hanenberg, Principal at JFLCO.

KippsDeSanto & Co. served as financial advisor to BEI Precision and JFLCO, and Jones Day (lead counsel) and Baker Hostetler (international trade, government contracts and defense security compliance matters) provided legal counsel. Sperry, Mitchell & Company served as financial advisor to Wenzel while McGinnis Lockridge were Wenzel’s legal representatives for the transaction.

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KippsDeSanto & Co. Advises Kforce, Inc. on its sale of TraumaFX Solutions to Tactical Medical Solutions, a portfolio company of Guardian Capital Partners

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KippsDeSanto & Co. Advises Kforce, Inc. on its sale of TraumaFX Solutions to Tactical Medical Solutions, a portfolio company of Guardian Capital Partners

KippsDeSanto & Co. is pleased to announce the sale of its client, TraumaFX Solutions (“TFX” or the “Company”), a subsidiary of Kforce Inc., (NASDAQ: KFRC), to Tactical Medical Solutions, a portfolio company of Guardian Capital Partners (“GCP”).

TFX is a leading developer, designer, and manufacturer of proprietary medical simulators that improve human and K9 survivability following trauma related incidents.  The Company has a leading position within its core markets and is well known for delivering high-fidelity simulators that deliver the most lifelike training experiences on the market.  TFX has established deep and recurring relationships within the well-funded Department of Defense (“DoD”), given its 10-year history supplying mission-critical products.

With the acquisition, TacMed, a provider of hemorrhage control and related safety products, expands its product portfolio, enabling the combined entity to cross-sell its complementary product offerings.  Additionally, the acquisition will expand TacMed’s customer base and accelerate the Company’s expansion into adjacent markets.

We believe this transaction demonstrates key trends in the training and simulation M&A environment:

  • Specialized and differentiated product offerings drive value in the market place
  • Company-owned IP provides important barriers to entry and promotes customer “stickiness”
  • Buyers remain interested in companies with strong margin profiles and recurring revenue
  • Both buyers and sellers continue to gain value from corporate divestitures

About KippsDeSanto & Co. KippsDeSanto & Co. is an investment banking firm focused on serving growth-oriented Aerospace / Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity and industry experience.  We help market leaders realize their full strategic value.  Having advised on over 100 industry transactions, KippsDeSanto is recognized for our analytical rigor, market insight, and broad industry relationships.  There’s no substitute for experience. For more information, visit www.kippsdesanto.com.

Press Release

Tactical Medical Solutions Announces the Acquisition of Leading Medical Simulator Manufacturer, TraumaFX

ANDERSON, S.C.–Tactical Medical Solutions, a leading innovator and manufacturer of proprietary pre-hospital medical components and technology for tactical and civilian applications, and Guardian Capital Partners, announce the acquisition of TraumaFX Solutions.

TraumaFX is the global market leader in innovative medical simulation and training technologies that improve survivability of severe injuries on the battlefield and in civilian casualty situations. TraumaFX specializes in high-fidelity, rugged simulators that deliver the most lifelike experience for trainees while enabling field exercise in any environment and weather condition.

TraumaFX’s innovative platform, with its advanced sensor technology, monitors critical treatment procedures and wirelessly transmits data to trainers so instruction can be optimized in real-time. After-action reporting provides objective feedback to leaders and staff confirming competencies, capabilities, and readiness.

“With a growing need to deliver trauma response capabilities in many environments, the addition of TraumaFX provides our customers a continuum of capabilities, from training support to market leading products, that will enhance their ability to respond when required,” said Ross Johnson, TacMed CEO. “Tactical Medical Solutions’ mission is to lead in trauma response and minimize preventable death. That starts with training and ensuring responders have access to life-saving medical technology. We are pleased to add TraumaFX to our portfolio as nothing on the market creates a more realistic and effective training environment than the TFX product line. We know it will support our clients’ efforts to deliver on their critical mission.”

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KippsDeSanto & Co. advises DELTA Resources, Inc. on its sale to VT Group, a portfolio company of The Jordan Company

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KippsDeSanto & Co. advises DELTA Resources, Inc. on its sale to VT Group, a portfolio company of The Jordan Company

KippsDeSanto & Co. is pleased to announce the sale of DELTA Resources, Inc.  (“DELTA” or the “Company”), to VT Group, a portfolio company of The Jordan Company.

Founded in 2000, DELTA is a next-generation U.S. Navy modernization solutions provider based in Alexandria, VA specializing in full lifecycle naval systems engineering and technical services for critical Naval Sea Systems Command (“NAVSEA”), Navy Program Executive Offices (“PEO”), Army, and DISA programs.

The Company’s deep domain knowledge and past performance in modernization and interoperability, to include Command, Control, Communications, Computers, Cyber and Intelligence (“C5I”), weapon systems engineering, shipbuilding and fleet modernization, IT modernization, cloud implementation, and cybersecurity has established DELTA as trusted partner to address customers’ most challenging mission requirements to advance the capabilities and technological superiority of the Navy’s Fleet and other key DoD programs, platforms, and warfare systems.

We believe this investment demonstrates several key trends in the defense and government technology M&A environment:

  • Acquirers continue to attribute strong value to companies with entrenched customer positioning and longstanding incumbency on mission-critical programs;
  • Deep domain and subject matter expertise, particularly in attractive C5I and IT modernization proficiencies, are critical differentiators for sellers in a crowded M&A market; and
  • Private equity continues to deploy capital in the government services market – via new platforms and add-ons to existing portfolio companies to further build the middle market; and

About KippsDeSanto & Co.

KippsDeSanto & Co. is an investment banking firm focused on serving growth-oriented Aerospace / Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity and industry experience.  We help market leaders realize their full strategic value.  Having advised on over 100 industry transactions, KippsDeSanto is recognized for our analytical rigor, market insight, and broad industry relationships.  There’s no substitute for experience.  For more information, visit www.kippsdesanto.com.

Press Release

VT Group Enhances Naval Modernization Capabilities with Acquisition of DELTA Resources, Inc.

CHANTILLY, VA – (October 1, 2019) — VT Group, a premier technology integrator and C4ISR solutions provider, is pleased to announce the acquisition of DELTA Resources, Inc., a rapidly growing firm of 350 highly skilled professionals specializing in naval systems engineering and technical services for the US Navy’s most critical shipbuilding and Fleet modernization programs.

Founded in 2000 and headquartered in Alexandria, Virginia, DELTA Resources provides the Naval Sea Systems Command (NAVSEA) and the Navy’s Program Executive Offices (PEOs) with C5I and weapons systems engineering, integrated product support, and a full spectrum of technical services. DELTA Resources also delivers information technology, cloud implementation, and cybersecurity engineering services to a growing customer base that includes the US Army and the Defense Information Systems Agency (DISA).

“I am excited to welcome the DELTA Resources team to VT Group,” said John Hassoun, VT Group President and Chief Executive Officer. “This acquisition adds differentiated technical expertise to our portfolio of Fleet modernization capabilities and positions VT Group as a leading provider of full lifecycle naval engineering services for the next generation of naval platforms and weapons systems.”

DELTA Resources founder and Chief Executive Officer Maria Proestou shared, “I am immensely proud of the DELTA Resources team, their commitment to our customers, and the business we’ve built together. This combination is the next chapter in our story. VT Group and DELTA Resources share a common vision, compatible cultures, complementary capabilities, and a customer-focused team of talented professionals.” Ms. Proestou will continue to lead DELTA Resources as a wholly-owned subsidiary of VT Group.

VT Group provides Defense Department customers with industry leading C4ISR modernization and sustainment solutions and full lifecycle engineering in the air, ashore, and at sea. Its US Navy prime contract customers include the Naval Air Systems Command (NAVAIR), Naval Information Warfare Systems Command (NAVWAR), and Naval Sea Systems Command (NAVSEA) and its capabilities span the engineering lifecycle spectrum, from concept development and design through installation, integration, and sustainment. Chief Growth Officer Sunil Ramchand added, “In the Program Executive Offices, at the Systems Commands, and on the deckplates of every class of warship and submarine in the Fleet, VT Group is honored to support the US Navy and proud to provide our Sailors with the warfighting capabilities of tomorrow.”

About VT Group

Headquartered in Chantilly, VA, VT Group is a leading technology integrator with nearly 50 years of experience delivering C4ISR solutions to complex challenges faced by our government and commercial customers in the Defense and National Security markets. An end-to-end provider of integrated information systems and technology engineering solutions, VT Group operations span more than 80 locations worldwide. For more information on VT Group, visit www.vt-group.com.

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KippsDeSanto’s DealView — Top 10 M&A Deals of the Quarter

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KippsDeSanto & Co., an investment banking firm focused on serving growth-oriented Aerospace / Defense, Government Services and Technology companies, would like to share its thoughts on the “Top 10 M&A Deals of the Quarter” for the period ended September 30, 2019.  The following table is our take on the most notable announced M&A transactions — not only based on size, but also on strategic importance and / or impact.

Of the above transactions, the following were especially noteworthy:

The aerospace and defense deal of the quarter is Advent International’s pending acquisition of Cobham plc (LSE:COB).  Cobham designs and manufactures equipment, specialized systems, and components for the aerospace and defense industries.  The estimated $5.16 billion transaction was announced on July 25th and required shareholder and government approval after the initial announcement.  Advent’s offer of $2.06 per share represents a 50 percent premium to the three-month average stock price.  The deal required 75 percent shareholder approval; over 90 percent of shareholders voted in favor of the transaction on September 16th, even after pushback from the Company’s largest shareholder.  Cobham’s board of directors unanimously supported and recommended the deal.  The acquisition fits Advent’s transaction history in the British electronics industry with its previous acquisition of Laird for $1.65 billion in 2018.  The deal still faces political and regulatory scrutiny after the British government served an intervention notice on national-security grounds.  The British government utilized a similar strategy for Melrose Industries plc’s acquisition of GKN plc in 2018, forcing Melrose into assurances that it would not divest key portions of GKN’s aerospace division.  The deal is expected to close by the end of 2019.

The government technology solutions deal of the quarter is Guidehouse’s acquisition of the global management consulting firm Navigant Consulting, Inc. (Nasdaq: NCI).  Navigant is a specialized professional services firm serving clients primarily in the healthcare, energy and financial services sectors. Guidehouse, a Veritas portfolio company, is a leading provider of management consulting and strategic advisory services to government clients. The combination of these two market leaders in consulting brings together complementary service offerings and deep industry expertise in both the commercial and public sectors, with a focus on supporting clients in the healthcare, financial services, energy, national security and aerospace and defense industries. Guidehouse CEO Scott McIntyre, who will lead the combined company, highlighted the forward-leaning nature of this combination, stating that “the acquisition of Navigant is the next step in our journey to create the next generation global consultancy.” The acquisition is the first for Guidehouse since its formation in May 2018 through PwC’s divestiture of its U.S. Public Sector Business to Veritas Capital. This deal reflects the broader trend of sponsors expanding their platforms’ offerings and customer base through bolt-on acquisitions of complementary targets, as seen this quarter by the sale of Connexta to Octo (Arlington Capital Partners platform) and AceInfo Solution’s acquisition by Dovel Technologies (Macquarie Capital platform).

Click to access KippsDeSanto’s 2019 Aerospace/Defense & Government Services M&A Survey

About KippsDeSanto & Co is an investment banking firm focused on serving growth-oriented Aerospace / Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity and industry experience.  We help market leaders realize their full strategic value.  Having advised on over 100 industry transactions, KippsDeSanto is recognized for our analytical rigor, market insight, and broad industry relationships.  There’s no substitute for experience.  For more information, visit www.kippsdesanto.com.

KippsDeSanto & Co. advises CWPS on its Sale to Red River

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KippsDeSanto & Co. advises CWPS on its Sale to Red River

KippsDeSanto & Co. is pleased to announce the sale of its client, Computer Word Processing Systems, Inc. (“CWPS” or the “Company”), to Red River Technology, LLC (“Red River”).

Headquartered in Chantilly, VA, CWPS is a leading technology solutions provider specializing in managed services ranging from complex network, collaboration, data center, cloud management and security through Tier 1 service desk capabilities.  The Company was a first-mover toward building an expertise in managed cloud services, shifting over time from unified communications to services in major cloud platforms including Microsoft Azure, Office 365, and Amazon Web Services (“AWS”).

This acquisition strengthens Red River’s position as a cloud services provider, expands and enhances its geographic managed services portfolio footprint within the Mid-Atlantic and Southeast regions, and provides Red River an additional 24×7 Network Operations Center (“NOC”).

We believe this investment demonstrates several key trends in the managed services market:

  • Strong demand for technology-driven, next-generation managed and cloud service companies;
  • Continued focus on high-growth oriented firms with proven scale and past performance, and sustainable, recurring revenue and profitability; and
  • Significant value attributed to deeply-embedded customer relationships and market know-how

 About KippsDeSanto & Co.

KippsDeSanto & Co. is an investment banking firm focused on serving growth-oriented Aerospace / Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity and industry experience.  We help market leaders realize their full strategic value.  Having advised on over 100 industry transactions, KippsDeSanto is recognized for our analytical rigor, market insight, and broad industry relationships.  There’s no substitute for experience.  For more information, visit www.kippsdesanto.com.

Red River Acquires CWPS

The Acquisition Adds Depth, Breadth and Maturity to Red River’s Managed Services Portfolio

September 06, 2019 12:20 PM Eastern Daylight Time

CLAREMONT, N.H. & WASHINGTON–(BUSINESS WIRE)–Red River, a technology transformation company, announced today that it has acquired Washington D.C.-based CWPS. The acquisition adds depth, breadth and maturity to Red River’s managed services portfolio and infuses the company with more than 150 talented, innovative people. The acquisition also enhances Red River’s geographic footprint within the Mid-Atlantic and Southeast regions and strengthens the company’s position as a leading cloud services provider by adding scale and scope in major cloud environments including Microsoft Azure, Office 365 and AWS.

CWPS is a technology solutions provider specializing in managed services ranging from complex network, collaboration, data center, cloud management and security through Tier 1 service desk. This expertise enhances Red River’s ability to better serve its customers across the full spectrum of technology – from designing, selling and integrating technology infrastructure to full-lifecycle services, application development and support.

“CWPS has successfully navigated every growth cycle in our business without having to take outside investment,” said Jason Waldrop, CEO of CWPS. “To accelerate our future growth, CWPS needed to find a partner with substance. By joining with Red River and leveraging its scale, resources and mature operating framework, we can provide greater opportunities for our employees and have greater impact on our customers’ technology and business outcomes.”

Red River now has two 24 x7 Network Operations Centers (NOC) and a geographic footprint that features major office locations in New Hampshire, Virginia, Texas and California with engineering and sales resources in over 25 states. CWPS will fold into Red River’s Managed Services organization with Jason Waldrop serving as the division’s President.

About Red River

Red River brings together the ideal combination of talent, partners and products to disrupt the status quo in technology and drive success for business and government in ways previously unattainable. Red River serves organizations well beyond traditional technology integration, bringing more than 20 years of experience and mission-critical expertise in security, networking, analytics, collaboration, mobility and cloud solutions. Learn more at redriver.com.

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KippsDeSanto & Co. advises AceInfo Solutions on its sale to Dovel Technologies, a portfolio company of Macquarie Capital

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KippsDeSanto & Co. advises AceInfo Solutions on its sale to Dovel Technologies, a portfolio company of Macquarie Capital

KippsDeSanto & Co. is pleased to announce the sale of its client, AceInfo Solutions (“AceInfo” or the “Company”), to Dovel Technologies (“Dovel”), a portfolio company of Macquarie Capital.

Headquartered in Reston, VA, AceInfo has established itself as a preeminent provider of NextGen IT solutions addressing the IT transformation and modernization needs across a strong base of Federal civilian and Department of Defense (“DoD”) customers.

Leveraging its differentiated portfolio of solutions, including Application Services, Systems Modernization, Agile Development, DevSecOps, Cloud Services, Cyber Security, and Managed Services, AceInfo delivers emerging technology to advance its customers’ critical modernization missions and has established decades-long relationships with the U.S. Department of Agriculture (“USDA”), Census Bureau, Department of Homeland Security (“DHS”), Department of Justice (“DoJ”) and NOAA, among many other Federal customers.

As Dovel’s first acquisition since being acquired by Macquarie Capital, AceInfo’s position across several strategic Federal agencies will augment Dovel’s customer base and further accelerate the combined market position through AceInfo’s contract vehicle portfolio, including Alliant 2, One Acquisition Solution for Integrated Services (“OASIS”), Responsive Strategic Sourcing for Services (“RS3”), the Defense Information System Agency’s (“DISA”) Encore III, and others.

We believe this transaction highlights several key trends in the government and technology solutions M&A market:

  • As the requirements of government customers continue to evolve, firms that offer forward leaning, NextGen solutions to include cloud and agile remain highly attractive acquisition candidates
  • Strong demand for access to prime, full and open contract vehicles as a conduit to drive growth
  • Private equity continues to invest and build the middle market through buy and build strategies

 About KippsDeSanto & Co.

KippsDeSanto & Co. is an investment banking firm focused on serving growth-oriented Aerospace / Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity and industry experience.  We help market leaders realize their full strategic value.  Having advised on over 100 industry transactions, KippsDeSanto is recognized for our analytical rigor, market insight, and broad industry relationships.  There’s no substitute for experience.  For more information, visit www.kippsdesanto.com.

Press Release – September 04, 2019

Dovel Technologies Acquires AceInfo Solutions

McLean, VA, September 4, 2019 – Dovel Technologies, a leading expert to federal agencies that blends deep domain expertise and advanced technologies in the health IT, life sciences, and grants management markets, today announced the acquisition of AceInfo Solutions. The addition of AceInfo will help Dovel diversify its client base and expand its market capabilities. It will rapidly advance Dovel’s portfolio of solutions and services and open up new opportunities for employees to grow their talents and experiences within the combined company.

AceInfo is a trusted IT partner to the federal government with core competencies in Infrastructure & Data Center Support, Agile Software Development, Systems Modernization, DevSecOps, Cloud Engineering, and Data Analytics and holds a number of best-in-class government-wide contracts. Additionally, its technology Centers of Excellence bring emerging technologies and solutions to their customer environments such as Serverless Architecture, Artificial Intelligence, and Machine Learning.

“AceInfo’s and Dovel’s deep technical capabilities and a shared commitment to our employees and customers are an ideal match”, said Jay Challa, Chairman and CEO, AceInfo. “Our cultures are both entrepreneurially focused and dedicated to delivering quality solutions. We are proud to bring our collective capabilities to make a positive impact across critical federal government projects.”

Dovel helps advance federal agency missions to bring about meaningful change to people around the world. The company has a long, proven history of integrating emerging technologies with domain expertise, mission requirements, and customer needs to produce lasting and highly innovative solutions to customers.

“The addition of AceInfo enables us to continue the aggressive pursuit of our long-term growth strategy of market expansion and competitive positioning in the mid-tier market,” said Paul Leslie, CEO of Dovel. “AceInfo adds complementary capabilities, a highly-skilled team of employees, and a diverse customer base that will help us advance our work in supporting the integration of emerging technologies with complex systems to manage data and information for more rapid decision making.”

Together, this newly formed mid-tier company will serve customers including government agencies such as the Department of Health and Human Services, the Department of Defense, Department of Agriculture, Department of Homeland Security, Department of Justice, and Department of Commerce.

“AceInfo has exceptional large program past performance, as well as contract vehicles that will open doors, expanding our client offerings” said Dovel President and COO, Damon Griggs. “I am inspired by this opportunity to broaden our impact and very much look forward to working with the AceInfo team to use our joint capabilities to drive organic growth.”

Combining AceInfo’s capabilities and services with Dovel’s deep technology and market knowledge allows Dovel to now offer the expertise of more than 2,200 technologists, scientists, and support staff to accelerate modernization efforts across the federal government sector customer base. The AceInfo transaction enhances Dovel’s heavy presence in the Washington, DC metropolitan area with offices now in McLean and Reston, Virginia as well as Rockville, Maryland. The combined company also has offices in other locations including Fort Collins, Colorado and Raytown, Missouri.

Investment bank KippsDeSanto acted as the financial advisor to AceInfo for this acquisition.

About Dovel Technologies

Dovel Technologies blends deep domain expertise with advanced technologies to accelerate solutions that best fit the needs of our customers. We apply deep subject matter experience in health IT, life sciences, and grants management to drive innovation and expand customer capabilities. We harness the power of emerging technologies to integrate complex systems and manage information, allowing for rapid decision-making in data-rich environments. In May 2019, Dovel received a significant capital investment from Macquarie Capital, the corporate advisory, capital markets, and principal investment arm of Macquarie Group. For more information visit www.doveltech.com

About AceInfo Solutions

AceInfo Solutions, Inc. is a leading Federal contractor with a focused vision: empower our clients, challenge our employees, and grow our business. Deeply committed to ensuring quality and customer satisfaction, the Capability Maturity Model Integration (CMMI) Level 3 maturity appraised company helps agencies transform and strengthen their processes, operations, infrastructures, and security practices to help them further their critical missions. For more information visit www.aceinfosolutions.com

 

KippsDeSanto & Co. Acquired By Capital One

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KippsDeSanto & Co. Acquired By Capital One

KippsDeSanto & Co. has been acquired by Capital One.

KippsDeSanto is a wholly-owned subsidiary of Capital One and will continue to operate under the KippsDeSanto brand. Our 30 professionals are excited to support Capital One’s thrust into middle market M&A. Joining Capital One is a natural next step in the KippsDeSanto growth plan. Beyond the M&A advice we currently offer, our clients will now have access to additional solutions offered by Capital One.

“Capital One and KippsDeSanto have a shared goal of providing clients with trusted advice and counsel enabled by deep industry expertise and a seamless client experience,” said Steve Tulip, Head of Capital Markets, Capital One Commercial Banking. “By bringing our teams together, we’ll be able to add scale and expertise to our growing M&A advisory group which will benefit clients in a wide variety of industries.”

With Capital One, a top 10 U.S. Commercial Bank, we found an innovative, technology savvy financial institution with a similar culture and business values. Moreover, we see enormous synergy and growth potential with their capital markets products, expanded private equity and corporate relationships and industry knowledge in aerospace and defense and other key verticals.

About KippsDeSanto & Co.

KippsDeSanto & Co. is a leading investment banking firm focused on serving leading, growth-oriented aerospace/defense, government services and technology companies. We are focused on delivering exceptional M&A and financing transaction results to our clients via leveraging our scale, creativity and industry experience. We help market leaders realize their full strategic value. Having advised on over 100 industry transactions, KippsDeSanto is recognized for our analytical rigor, market insight and broad industry relationships. There’s no substitute for experience. For more information, visit www.kippsdesanto.com.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $254.5 billion in deposits and $373.6 billion in total assets as of June 30, 2019. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia,

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KippsDeSanto & Co. Advises McNally Industries, LLC, a portfolio company of Gardner Standard LLC, on its sale to Susquehanna Private Capital, LLC

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KippsDeSanto & Co. Advises McNally Industries, LLC, a portfolio company of Gardner Standard LLC, on its sale to Susquehanna Private Capital, LLC

KippsDeSanto & Co. is pleased to announce the sale of McNally Industries, LLC (“McNally” or the “Company”), a portfolio company of Gardner Standard LLC, to Susquehanna Private Capital, LLC.

Headquartered in Grantsburg, WI, McNally is a leading provider of advanced design engineering, complex test and assembly, and precision machining and manufacturing for mission-critical applications, primarily supporting both new and legacy platforms for the aerospace & defense and midstream oil & gas markets.  The Company’s full-service offerings range from initial product design and manufacturing to final testing and after-market support.  Deep engineering capabilities, including reverse engineering and technical data package development, have created significant competitive advantages and high barriers to entry.  Additionally, this expertise has enabled McNally to establish sole-source / single-source positioning on various highly-visible and well-funded Programs of Record (“PoR”) and to develop proprietary products.  McNally has an established history supporting various Department of Defense (“DoD”) customers with missions across land, air, and sea.  Supported programs include the Bradley Fighting Vehicle; Apache, Blackhawk, and Chinook helicopters; and DDG-51 destroyers.

Well-positioned in the growing defense and energy end markets, McNally maintains strong relationships with a strategically diversified portfolio of government end users, key system integrators and defense primes, as well as commercial oil & gas customers.  Continued investments in new machinery and equipment coupled with an emphasis on cultivating engineering talent with relevant industry certifications, educational backgrounds, and requisite security clearances has allowed McNally to succeed and drive continued growth.

We believe this investment demonstrates several key trends in the aerospace and defense M&A environment:

  • Demand for companies with entrenched and defensible positions on PoRs and key enduring programs which provide significant revenue visibility and backlog;
  • Significant value placed on companies with single / sole-source status given high barriers to entry created by differentiated capabilities portfolios and proprietary solutions;
  • Interest in customer footprint diversified across government users, defense primes, and commercial players;
  • Private equity firms remain active; buyers look to acquire new platforms in well-funded and defensible markets.

 About KippsDeSanto & Co. KippsDeSanto & Co. is an investment banking firm focused on serving growth-oriented Aerospace / Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity and industry experience.  We help market leaders realize their full strategic value.  Having advised on over 100 industry transactions, KippsDeSanto is recognized for our analytical rigor, market insight, and broad industry relationships.  There’s no substitute for experience.  For more information, visit www.kippsdesanto.com.

Press Release

MCNALLY INDUSTRIES, LLC PARTNERS WITH SUSQUEHANNA PRIVATE CAPITAL, LLC

BALA CYNWYD, PA – (September 9, 2019) — Susquehanna Private Capital, LLC (“SPC”), a middle market investment firm and member of the Susquehanna International Group of Companies (“SIG”), is pleased to announce its investment in McNally Industries, LLC (“McNally”), a precision systems manufacturer to defense and industrial markets based in Grantsburg, Wisconsin.

McNally has an established history supporting various U.S. Department of Defense customers with missions across land, air, and sea. Supported programs include Ground Combat Vehicles, including Bradley, Paladin and the Army’s new Armored Multi-Purpose Vehicle, Army Rotary Wing Aircraft, including Blackhawk, Apache and Chinook, the Navy’s fleet of DDG-51 destroyers as well as the Army’s 120mm, 81mm and 60mm Mortar Weapons Systems.

“We are excited to partner with McNally’s management team during the next phase of the Company’s growth” said Kyle Squillario, Director at SPC. “The Company’s impressive manufacturing operations coupled with its advanced engineering and design capabilities serve as clear differentiators at a time when the industry is demanding more from its suppliers.”

McNally recently built a new 17,500 square foot assembly and test facility at its Grantsburg, Wisconsin campus to better accommodate the significant growth the Company is experiencing. “The McNally team is very excited to partner with SPC and the strength they bring to continue advancing the Company’s growth,” said Jim Segelstrom, CEO of McNally.

As part of the transaction, SPC has already made significant capital investments in the latest automated manufacturing technology so the Company can better meet increased customer demand for McNally’s products and services. “We believe McNally’s focus on legacy systems and aftermarket components to the defense industry align well with the U.S. Department of Defense’s stated goals and objectives” said Leo Helmers, Co-Founder and Group Head of SPC. “We look forward to partnering with management and investing in the business to enhance the Company’s capabilities, market position, and quality of service.”

KippsDeSanto & Co. served as the financial advisor to Gardner Standard. As part of the transaction, Gardner Standard will retain a minority position in McNally.

About McNally Industries

Founded in 1942 and headquartered in Grantsburg, Wisconsin, McNally provides advanced design engineering, complex test and assembly, and precision machining and manufacturing for mission-critical applications, primarily supporting both new and legacy platforms for the aerospace & defense and midstream oil & gas markets. The Company’s full-service offerings range from initial product design and manufacturing to final testing and aftermarket support, including reverse engineering and technical data package development. The Company works with leading blue-chip clients that serve the U.S. Department of Defense and midstream oil & gas end markets. For more information, please visit www.mcnally-industries.com.

About Susquehanna Private Capital

SPC is an affiliate of Susquehanna International Group, LLP (“SIG”), one of the world’s largest privately-held financial services firms. SPC makes majority and minority investments in domestic, middle market companies across a variety of industries, including: aerospace, defense & government, business services, healthcare, and industrials. The firm is backed by a unique and patient capital base that gives management teams the freedom and flexibility to pursue business plans that maximize long-term value creation. For more information, please visit www.spcllc.com.