KippsDeSanto & Co. Advises IntelliWare Systems, Inc. on its sale to Trowbridge & Trowbridge

KippsDeSanto & Co. Advises IntelliWare Systems, Inc. on its sale to Trowbridge & Trowbridge

KippsDeSanto & Co. is pleased to announce the sale of its client, IntelliWare Systems, Inc. (“IntelliWare” or the “Company”), to Trowbridge & Trowbridge.

Headquartered in Spotsylvania, VA, IntelliWare is a leading provider of NextGen intelligence, cyber, professional, and information technology solutions to the Federal Bureau of Investigation (“FBI”), U.S. Marshals Service, Department of Homeland Security, and Department of State.  IntelliWare applies its intelligence collection / analysis, cybersecurity, mission operations support, and data management / exploitation expertise to address complex law enforcement and national security mission challenges.  The Company’s deep operational and technical expertise and strong domain knowledge have driven consistent and considerable growth.  The combination will afford IntelliWare additional scale and capital as part of Trowbridge to accelerate its strategy with current customers and beyond.

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

  • Private equity, in this case Enlightenment Capital, building capability and customer-rich growth platforms in the middle market
  • Strong buyer interest for growing companies with domain expertise in highly-sought-after law enforcement and national security markets
  • Innovative solutions and prime, F&O contract wins driving both growth and value creation for mid-sized companies attracting substantial buyer demand

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.

Investment Banking products and services are offered through KippsDeSanto & Co., a non-bank subsidiary of Capital One, N.A., a wholly-owned subsidiary of Capital One Financial Corporation, and a member of FINRA and SIPC. Products and services are Not FDIC insured, Not Bank Guaranteed, May Lose Value, Not a Deposit, and Not Insured by Any Federal Government Agency. 

Press Release

Trowbridge Acquires IntelliWare Systems

MCLEAN, Va. – February 4, 2020 – Trowbridge & Trowbridge, a provider of innovative technical solutions to complex Federal information technology challenges in the defense and civilian markets, today announced the acquisition of IntelliWare Systems. The addition of IntelliWare will enhance Trowbridge’s portfolio of solutions, add new and strategic national security customers, and create opportunities for employees within the combined company. Trowbridge is backed by Enlightenment Capital.

IntelliWare provides cyber, intelligence, and information technology solutions to the Federal Bureau of Investigation, U.S. Marshals Service, Department of Homeland Security, and Department of State. The company operates at the intersection of intelligence, law enforcement, and homeland security, and has a proven history of integrating domain expertise and intelligence analysis with mission requirements, technology, and security to produce lasting and innovative solutions for customers.

Cass Panciocco, Trowbridge President and CEO, said, “IntelliWare adds complementary capabilities, a highly-skilled team of employees, and a new customer base that will help us further enable Federal agencies to integrate emerging technologies with complex systems, and conduct data and intelligence analysis for better informed, more efficient decision making. We are excited to welcome the entire IntelliWare team to the Trowbridge family.”

“IntelliWare holds franchise positions providing high-end solutions to Federal law enforcement and homeland security agencies,” added Trowbridge Chief Growth Officer Matthew Candy. “These customers have critical mission needs and correspondingly growing budgets. We have identified several key opportunities to better serve our customers that neither business could pursue independently. Together with Trowbridge’s strategic positions within defense customers, the combined business has the size, scale, and reach-back to further expand organically through additional solutions and contracting options.”

“The deep technical and operational capabilities of IntelliWare and Trowbridge, as well as our shared commitment to employees and customers’ missions, make this an ideal match,” said Dominic LaPore, CEO and Founder of IntelliWare. “Our cultures are dedicated to excellence in delivering high-quality solutions, and we are proud to bring our collective capabilities to market with Trowbridge to enable critical Federal government national security missions.”

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

About Trowbridge
Trowbridge is an award-winning provider of cloud, cyber, and next-gen digital solutions to defense, intelligence, and Federal civilian markets. Headquartered in McLean, Virginia, with locations and staff nationwide, Trowbridge helps move critical missions forward to support the American people and our national security. Trowbridge is a portfolio company of Enlightenment Capital. To learn more or join the team, visit www.tt-llc.com.

About Enlightenment Capital
Enlightenment Capital, a Washington, DC area based private investment firm, provides flexible capital and strategic support to middle market companies in the Aerospace, Defense & Government (ADG) sector. The firm partners with businesses that provide vital services, protect critical infrastructure, innovate cyber and data solutions, enhance decision making capabilities, engineer aerospace systems, safeguard national security, and endeavor to meet the challenges of today and tomorrow. For more information, visit www.enlightenment-cap.com.

Washington Business Journal Features Robert D. Kipps

When it comes to business advice, Bob Kipps goes ‘Godfather’

Generally, Bob Kipps is the guy who’s going to tell you where there’s a good merger or acquisition deal to be had.

As the managing director and co-founder of Tysons-based investment bank KippsDeSanto & Co., Kipps has advised companies on more than $17 billion worth of M&A deals since opening the firm in 2007. But he found himself on the other end of a megadeal in August, when Capital One Financial Corp. acquired his firm to open a new avenue of investment banking that the larger financial giant, also based in Tysons, had yet to pursue. Terms of the 2019 deal were not disclosed.

Months into the new marriage, Kipps said he is already feeling the benefits of being part of a major business enterprise. We sat down with him to talk about what the M&A market looks like in 2020 for government contracting and where he feels at home, when away from the boardroom.

Read More

KippsDeSanto & Co. Advises Smartronix, Inc. on its Recapitalization by OceanSound Partners

KippsDeSanto & Co. Advises Smartronix, Inc. on its Recapitalization by OceanSound Partners

KippsDeSanto & Co. is pleased to announce the recapitalization of Smartronix, Inc.  (“Smartronix” or the “Company”), by OceanSound Partners (“OceanSound”).

Founded in 1995, Smartronix is a premier provider of mission critical Command, Control, Communications, Computer, Intelligence, Surveillance, and Reconnaissance (“C4ISR”) and next generation IT and complex enterprise network operations  programs for the Department of Defense (“DoD”), as well as leading end-to-end cloud solutions for public sector and commercial customers.

Smartronix has established itself as a C4ISR lead industry integrator on several contracts that span across multiple programs, platforms, and agencies. The Company’s ability to deliver on large, complex programs has yielded over $2 billion in contract awards performing C4ISR integration globally for a myriad of DoD customers.

With over a decade of experience providing cloud professional and managed services, Smartronix’ cloud business is strategically positioned to serve customers within highly regulated industries including federal civilian, defense, healthcare, financial services, state and local government, and education, among other sectors. The Company has been recognized as a Leader by Gartner in their Magic Quadrant for Public Cloud Professional and Managed Services Providers, as well as being accredited as a managed services provider and Premier Partner by all three large cloud services providers; Amazon, Microsoft and Google, a distinction that is highly sought after and rare across the ecosystem of service providers in cloud.

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

  • Highlights the demand for scarce assets with a Full and Open, large scale, mission critical contract profile backed by a suite of complementary Full and Open vehicles, such as Alliant II, OASIS and RS3;
  • Industry leading domain expertise, particularly in high priority, well-funded markets such as C4ISR, is a critical differentiator for sellers in a crowded M&A market;
  • Buyers recognize the rarity and value of companies that have next generation IT and cloud capabilities, particularly those supporting all three leading cloud service providers (AWS, Microsoft and Google); and
  • Private equity continues to deploy capital in the government and commercial technology market – via new platforms and add-ons to existing portfolio companies to build differentiated middle market players

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.

Investment Banking products and services are offered through KippsDeSanto & Co., a non-bank subsidiary of Capital One, N.A., a wholly-owned subsidiary of Capital One Financial Corporation, and a member of FINRA and SIPC. Products and services are Not FDIC insured, Not Bank Guaranteed, May Lose Value, Not a Deposit, and Not Insured by Any Federal Government Agency.

Press Release

OceanSound Partners Announces Strategic Investments to Create Leading Government Technology Business

NEW YORK–(BUSINESS WIRE)–OceanSound Partners, LP (“OceanSound”), a private equity firm focused on making control investments in middle-market technology and technology-enabled companies, today announced the recapitalizations of Smartronix, Inc. (“Smartronix”) and Trident Technologies, LLC (“Trident”). Financial terms of the private transaction were not disclosed.

Smartronix, based in Hollywood, MD, is a leading provider of next-generation information technology and cloud solutions to government and commercial customers, and intelligence, surveillance, and reconnaissance solutions to the U.S. Department of Defense. The recapitalization of Smartronix was completed in December 2019. Trident, based in Huntsville, AL, is a leading provider of advanced IT, engineering, and programmatic solutions to the United States federal government. The company was acquired by OceanSound in March 2019.

“The Smartronix team is thrilled to partner with OceanSound given their deep experience in our core markets and a shared vision on how we can continue to grow our company,” said John Parris, CEO of Smartronix. “This partnership will allow us to further build our brand, broaden our portfolio of capabilities and expand into new customer segments by investing in the business, both organically and with strategic acquisitions.”

“The Smartronix and Trident transactions are exciting and meaningful milestones for OceanSound that validate our investment strategy, our team’s capabilities and the strong support we have received from investors, especially considering the collective magnitude of the transactions in our first year,” stated Joe Benavides, Co-Founder and Partner at OceanSound. “We have assembled an exceptional team with significant prior experience investing together within our focus markets. We are united in the conviction that we can apply our collective expertise and experience to identify, acquire, and drive value creation within attractive middle-market companies operating in both government and commercial markets.”

In addition to Benavides, the firm is led by experienced investment partners Jeff Kelly and Ted Coons, and supported by a team of 10 Executive Partners, investment professionals, and administrative staff. Benavides most recently served as a Partner at Veritas Capital where he worked with Kelly, and was previously at The Blackstone Group, where he worked with Coons. Prior to OceanSound, Kelly was most recently at H.I.G. Capital while Coons was most recently a General Partner at TCV.

“Given our long history of working together, launching OceanSound has been a seamless transition,” said Coons, Co-Founder and Partner at OceanSound. “These initial transactions fit squarely within our investment strategy and leverage our differentiated perspective of companies operating at the intersection of government and technology. Smartronix and Trident provide mission-critical digital transformation and cloud computing solutions, particularly to government customers, and their collective expertise in multi-cloud, data analytics, and cybersecurity ideally positions the businesses to compete and win in the growing markets for mission-critical IT, cloud, and defense services and solutions.”

“We are excited to embark on the next phase of Trident’s growth in partnership with OceanSound. Their strategic guidance and experience in our industry will be invaluable to us as we expand our business to provide new solutions to customers and pursue growth opportunities that were unavailable to us as a founder-owned business,” said Mike Williams, CEO of Trident.

“We are thrilled to have the opportunity to partner with Smartronix and Trident. Each have distinguished employee bases and impressive track records delivering mission critical services and solutions to their customers. Both companies will gain access to additional resources, a diverse portfolio of capabilities and contract vehicles, as well as enhanced geographic reach to better serve the needs of customers,” said Kelly, Co-Founder and Partner at OceanSound. “We look forward to supporting their continued growth with additional investments in corporate infrastructure, including human capital and technology, and strategic acquisitions.”

KippsDeSanto & Co. served as the exclusive financial advisor to Smartronix. Arena Strategic Advisors provided due diligence and strategy support to Trident and OceanSound. Pillsbury Winthrop Shaw Pittman LLP served as legal counsel to Smartronix, and Gibson, Dunn & Crutcher LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to OceanSound.

About OceanSound Partners

OceanSound Partners is a middle-market private equity firm that invests in U.S. based technology and technology-enabled services companies operating in business-to-government and business-to-business end markets. OceanSound targets investments with defensible and resilient business models, attractive secular market growth, and multiple opportunities for value creation. We seek to execute a value-oriented approach, investing in businesses which are complex or facing an inflection point. OceanSound specializes in enacting strategic and operational initiatives to reposition businesses and drive transformational growth in partnership with management teams. We invest in companies that are driving digital transformation, primarily in the government, industrial, enterprise, and communications technology sectors, which include hardware, services and software businesses. For more information, please visit www.oceansoundpartners.com.

About Smartronix, Inc.

Smartronix is a leading provider of next generation IT, cloud and ISR solutions to the Department of Defense, federal civilian and commercial customers. The company’s core capabilities include cloud professional, managed, and resale services; ISR solutions; mission systems integration; enterprise network operations; cybersecurity; and; systems integration services. Smartronix serves a wide range of customers across federal and state government and commercial markets. For more information, please visit https://www.smartronix.com/.

About Trident Technologies, LLC

Trident Technologies, LLC is a leading provider of advanced engineering, information technology and programmatic and technical services to a wide variety of customers within the United States Department of Defense. The company’s capabilities include advanced engineering; enterprise architecture; data integration, collection and management; development, integration and deployment; cloud migration; cybersecurity, and; data analytics. Trident serves a diverse group of customers across the Department of Defense, with a primary focus on the U.S. Army, U.S. Transportation Command, and the Missile Defense Agency. For more information, please visit www.tridenttechnologies.net.Contacts

Contacts

Media
Charlyn Lusk, Stanton
clusk@stantonprm.com
646-502-3549