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KippsDeSanto & Co. advises BlueWater Federal Solutions, Inc., on its sale to Tetra Tech, Inc.

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KippsDeSanto & Co. advises BlueWater Federal Solutions, Inc., on its sale to Tetra Tech, Inc.

KippsDeSanto & Co. is pleased to announce the sale of its client, BlueWater Federal Solutions, Inc. (“BlueWater” or the “Company”) to Tetra Tech, Inc. (“Tetra Tech”).

Headquartered in Chantilly, Virginia, BlueWater provides cybersecurity, information technology, systems / network engineering, and program management services to numerous agencies throughout the Federal Government, including the Federal Emergency Management Agency, Department of Energy, and Department of Defense.

BlueWater provides these clients with a variety of high-end IT and mission-oriented services, systems, and solutions that are essential to these agencies’ operations. Over the past decade, the Company’s leadership team and workforce of highly skilled / certified employees have led BlueWater to achieve considerable growth. This growth has been supported by the Company’s ability to understand and address mission challenges while continuing to leverage its technical expertise as a means of expanding its customer footprint.

BlueWater provides Tetra Tech with significant past performance throughout the Federal Government, and is expected to drive continued success by way of leveraging Tetra Tech’s expansive portfolio of contract vehicles and customer reach. BlueWater represents Tetra Tech’s second acquisition of 2020.

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

  • Acquisition priority for companies with high-end technology and analytics capabilities, in addition to well funded DoD-oriented footprint
  • Buyers – public company and private equity firms alike – continue to deploy capital via M&A for well-positioned companies, notwithstanding COVID-19 and broader market turbulence
  • Strong company fundamentals in terms of prime contracts, scale, performance, and a track-record of growth drive M&A interest and value

 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

Tetra Tech Acquires BlueWater Federal Solutions to Broaden High-End Technology Service Offerings

09/29/2020
PASADENA, Calif.–(BUSINESS WIRE)– Tetra Tech, Inc. (NASDAQ: TTEK), a high-end consulting and engineering firm, announced today that it has further expanded its advanced analytics business with the addition of BlueWater Federal Solutions, Inc. (BlueWater), a leading information technology systems and services firm. Based in Chantilly, Virginia, BlueWater has built a high-performing team of more than 350 employees who bring specialized expertise in cybersecurity, mission-critical systems design, and development and operation of federal enterprise systems for U.S. government clients, including the Federal Emergency Management Agency, Department of Energy, and Department of Defense.

“Our ability to integrate high-end technology and analytics in the delivery of customized water, environment, and sustainable infrastructure solutions is a key differentiator for Tetra Tech in the marketplace today,” said Dan Batrack, Tetra Tech Chairman and CEO. “The addition of BlueWater builds on our strategy to grow our advanced analytics business with expanded capabilities in artificial intelligence, cybersecurity solutions, and mission-essential services for our U.S. federal customers.”

Brian Nault, BlueWater President, said, “Our team is thrilled to join Tetra Tech and work together to expand our capabilities and solutions that solve our clients’ most complex problems. By joining with Tetra Tech, BlueWater creates tremendous opportunities for our employees, expands our reach in the federal market through access to key contract vehicles, and increases the technical capacity and access to resources needed for us to deliver on our customers’ new and changing requirements.”

The terms of the acquisition were not disclosed. BlueWater is joining Tetra Tech’s Government Services Group.

About BlueWater Federal Solutions, Inc.

BlueWater is a leading mission support services provider of Enterprise IT solutions, cybersecurity, engineering, global command and control, and applications development. BlueWater, based in Chantilly, Virginia delivers full lifecycle solutions and modernization for U.S. federal agencies, including the Department of Defense and Intelligence.

About Tetra Tech

Tetra Tech is a leading provider of high-end consulting and engineering services for projects worldwide. With 20,000 associates working together, Tetra Tech provides clear solutions to complex problems in water, environment, infrastructure, resource management, energy, and international development. We are Leading with Science® to provide sustainable and resilient solutions for our clients. For more information about Tetra Tech, please visit tetratech.com, follow us on Twitter (@TetraTech), or like us on Facebook.

Any statements made in this release that are not based on historical fact are forward-looking statements. Any forward-looking statements made in this release represent management’s best judgment as to what may occur in the future. However, Tetra Tech’s actual outcome and results are not guaranteed and are subject to certain risks, uncertainties and assumptions (“Future Factors”), and may differ materially from what is expressed. For a description of Future Factors that could cause actual results to differ materially from such forward-looking statements, see the discussion under the section “Risk Factors” included in the Company’s Form 10-K and 10-Q filings with the Securities and Exchange Commission.

View source version on businesswire.com: https://www.businesswire.com/news/home/20200929005255/en/

Jim Wu, Investor Relations
Charlie MacPherson, Media & Public Relations
(626) 470-2844

Source: Tetra Tech, Inc.

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KippsDeSanto & Co. Advises Irving Burton Associates on its sale to DLH Corp

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KippsDeSanto & Co. Advises Irving Burton Associates on its sale to DLH Corp

KippsDeSanto & Co. is pleased to announce the sale of its client, Irving Burton Associates (“IBA” or the “Company”), to DLH Holdings Corp. (NASDAQ: DLHC) (“DLH”).
Founded in 1979 and based in Falls Church, VA, IBA is a leading provider of innovative healthcare research, services and solutions to the Defense Health Agency (“DHA”), the Telemedicine & Advanced Technology Research Center (“TATRC”) of the US Army’s Medical Research and Development Command (“USAMRDC”), and other health-focused agencies within the U.S. Department of Defense (“DoD”). IBA maintains a top-secret facility clearance, and its defense contracts provide for a range of health IT services including digital transformation, data analytics, cybersecurity, and artificial intelligence (“AI”).

We believe this transaction illustrates various trends in the government technology M&A environment:

  • Strong strategic buyer interest in well-positioned, targets providing high priority support to health-related Federal customers
  • Demand for companies with embedded positions and long-term relationships on key programs within well-funded customers
  • Buyers continue to place emphasis on targets with larger, prime, full and open contracts

 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

DLH Acquires IBA to Bolster its DoD Health Technology Capabilities

Atlanta, Georgia – October 1, 2020

DLH Holdings Corp. (NASDAQ: DLHC) (“DLH” or the “Company”), a leading provider of innovative healthcare research, services and solutions to the federal government, today announced that it has acquired privately-held Irving Burton Associates, LLC (“IBA”) of Falls Church, Virginia. The firm, with approximately 115 employees, provides research, systems development, and other technology-enabled solutions to the Defense Health Agency (“DHA”), the Telemedicine & Advanced Technology Research Center (“TATRC”) of the US Army’s Medical Research and Development Command (“USAMRDC”), and other agencies within the U.S. Department of Defense (“DoD”). IBA maintains a top-secret facility clearance, and its defense contracts provide for a range of health IT services including digital transformation, data analytics, cybersecurity, and artificial intelligence (“AI”).

IBA was purchased for $32.0 million in cash, or $26.5 million net of transaction-related tax benefits worth approximately $5.5 million on a net present value basis. DLH estimates that IBA will contribute annualized revenue of approximately $25 million to the Company going forward, and the firm’s backlog was approximately $143 million at closing. IBA will be a wholly owned subsidiary of DLH Holdings Corp. and a part of DLH’s Mission Services & Solutions operating unit led by Helene Fisher (former US Army Signal Corps). IBA’s current president, Mary Dowdall, will remain with DLH in leadership of the IBA organization.

“IBA complements our capabilities and enhances our readiness profile for military and other agency business through research, analytics, and advancing technologies,” said Zachary Parker, DLH President & CEO. “For several decades IBA has leveraged its expertise in program management, research and engineering, and health data analytics to expand its business in support of agencies in the Military Health System (MHS). We are confident that IBA will strengthen our growth outlook and bring new opportunities in technology-enabled healthcare solutions. I am proud to have IBA join the DLH family of operations.”

“We believe that DLH is an ideal partner for IBA, from both a business and cultural perspective” added Mary Dowdall, President of Irving Burton Associates. “Our employees will appreciate and embrace the collective spirit, shared objectives, and expanding opportunities that our combined organization will bring. We look forward to aligning our mutual commitment and mission-driven focus to deliver technology-enabled services to federal government agencies.”

DLH financed the acquisition through an amendment to its existing secured credit facility. Borrowing availability was provided by debt prepayments facilitated by the Company’s ongoing cash generation. First National Bank of Pennsylvania acted as agent, and F.N.B. Capital Markets and M&T Bank acted as joint lead arrangers. The credit facility was comprised of a syndicated term loan of $70 million and revolving credit facility of $25 million. All bank members of the syndicated credit facility committed funding to their original loan amounts. Additional terms of the transaction and financing arrangements will be available in the Company’s SEC filings.

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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 30th, 2020.

The following is our take on the most notable announced M&A transactions in the third quarter of 2020 — 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 the United Kingdom (“UK”) Government’s and Bharti Global’s pending acquisition of OneWeb, LLC. OneWeb, a satellite technology company with dual headquarters in London and the Washington D.C. metro area, provides space-based internet from low Earth orbit (“LEO”). After reducing its headcount nearly 90%, the company filed for bankruptcy in March due to a liquidity crisis exacerbated by the COVID-19 pandemic and the resulting market selloff. The anticipated cash infusion of more than $1 billion is expected to allow OneWeb to successfully emerge from Chapter 11 proceedings and continue its mission of becoming a global leader in low latency connectivity. Previously, OneWeb didn’t have the ability to compete with Starlink’s budget, but with funding from the UK and Bharti, OneWeb becomes a legitimate challenger to Starlink’s dominant presence in the LEO internet market. For Bharti Global, which already has its own mobile broadband networks, the OneWeb investment is expected to return value as Bharti can use its networks as a testing ground for OneWeb products and services. Bharti will also be able to deliver OneWeb’s offerings to established markets in South Asia and Sub-Saharan Africa, where the geography necessitates the use of satellite-based connectivity. The UK benefitted from this acquisition in a different manner. The acquisition allowed the UK to establish its first sovereign space capability. In turn, the UK can potentially leverage this capability for positioning, navigation, and timing (“PNT”) as Brexit has created barriers to the EU’s satellite resources.

The technology solutions deal of the quarter is Amentum’s pending acquisition of DynCorp International, which is expected to close in the fourth quarter of 2020, subject to customary closing conditions and regulatory approvals. DynCorp is a leading global provider of aviation, logistics, training, intelligence, and operational solutions to military, government, and commercial customers. Once finalized, the combined business will become one of the largest providers of mission-critical aviation, logistics, and IT support services, with more than $6 billion of revenue and 34,000 employees operating across approximately 30 countries. The acquisition is expected to accelerate growth across the combined platform by creating cross-selling opportunities, as DynCorp enhances Amentum’s services offerings and provides expanded customer access. The combination of Amentum’s core offerings within mission support, IT, cybersecurity, nuclear and environmental remediation, program management, and testing is complementary to DynCorp’s expertise across aviation, contractor logistics, intelligence, and training. The expanded set of capabilities allows the combined platform to offer a more complete set of solutions to its customers and hopefully augment growth. At an industry level, the deal, in tandem with such other acquisitions as KBR’s purchase of Centauri, SAIC’s purchase of Unisys Federal, and Leidos’ purchase of Dynetics, underscores an ongoing appetite to add scale via mergers and acquisitions among the industry’s largest players.

About KippsDeSanto & Co KippsDeSanto & Co. is the largest independent investment banking firm exclusively 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.

Securities and investment banking products and services are offered through KippsDeSanto & Co., a nonbanking subsidiary of Capital One, N.A., a wholly owned subsidiary of Capital One Financial Corporation. KippsDeSanto is a member of FINRA and SIPC. Products or services are Not FDIC Insured, Not Bank Guaranteed, May Lose Value, Not a Deposit, and Not Insured By Any Federal Governmental Agency.