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KippsDeSanto & Co. Advises Alethix, LLC on its sale to IntelliBridge, Inc., a portfolio company of Enlightenment Capital

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KippsDeSanto & Co. Advises Alethix, LLC on its sale to IntelliBridge, Inc., a portfolio company of Enlightenment Capital

KippsDeSanto & Co. is pleased to announce the sale of its client, Alethix, LLC (“Alethix” or the “Company”), to IntelliBridge, Inc., a portfolio company of Enlightenment Capital

Headquartered in Fairfax, VA, Alethix provides mission-focused technology solutions that solve complex challenges around the speed and security of data-in-transit, interoperability of enterprise systems, and data processing at scale for a wide range of Homeland Security, Federal-Civilian, and Defense customers.

Since its founding in 2012, Alethix has built enduring relationships across the Department of Homeland Security (“DHS”) and Department of Defense (“DoD”), and has more recently established strong presences at various Federal-Civilian agencies, such as the U.S. Department of Agriculture (“USDA”), the National Oceanic and Atmospheric Administration (“NOAA”), and the U.S. Census Bureau.

The Alethix acquisition is expected to enhance IntelliBridge’s position across National Security and Federal-Civilian agencies. IntelliBridge will also be able to deliver in-demand, next generation capabilities to these customers through Alethix’s cloud, data analytics, and digital solution expertise.

We believe this transaction demonstrates several key trends in the government services mergers and acquisitions (“M&A”) market:

  • In-demand capabilities that can address Cloud, DevSecOps, Agile, and other next generation requirements continue to generate acquisition interest from strategic buyers as a means of accelerating growth and maintaining a brand of market leadership
  • Buyers continue to value franchise positions at key Federal customers at the forefront of digital transformation
  • For premium, well-positioned assets, M&A appetite remains steady despite the broader market impact of COVID-19 and its corresponding challenges

 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 

 IntelliBridge Acquires IT Transformation Company Alethix

McLean, Va. – February 1, 2021 — IntelliBridge Inc. (“IntelliBridge”), a leading provider of technology, intelligence, and mission support services to defense, federal law enforcement, and civilian agencies, today announced the acquisition of Alethix LLC (“Alethix”). The addition of Alethix will strengthen IntelliBridge’s technology portfolio with advanced DevSecOps and Cloud solutions, as well as expand its footprint across Homeland Security, Federal-Civilian, and Defense agencies. IntelliBridge is backed by Enlightenment Capital.

Founded in 2012, Alethix solves complex technology challenges around data-in-transit, enterprise systems interoperability, and data processing at scale for national security, defense and civilian agencies. Alethix enables its DHS (i.e., USCIS, CBP, TSA), USDA, NOAA, Census, and DoD customers to innovate and accelerate their missions using the power of cloud, data analytics, and digital solutions.

Cass Panciocco, IntelliBridge President and CEO, said, “Alethix’s team of trusted technology experts bolsters our position in the digital solutions marketplace, which will allow us to bring agile, repeatable, and scalable solutions to our current and prospective customers. This combination will create instant synergies for both our customers and employees. We are excited to welcome the entire Alethix team to the IntelliBridge family.”

“Alethix is a trusted partner in providing high-end and transformative IT solutions for the critical mission needs of national security and civilian agencies,” added IntelliBridge Chief Growth Officer Matthew Candy. “Together, we are better positioned to navigate the IT marketplace and capitalize on the Government’s increasing adoption of digital solutions. Through IntelliBridge’s strategic positions within Defense, Federal Law Enforcement, Homeland Security, and Civilian customers, we have the size, scale, and reach-back to further expand organically through additional solutions and contracting options.”

“Alethix is excited to join the IntelliBridge team, which has built deep technical and operational capabilities that will only make our solutions more impactful. IntelliBridge shares our commitment to both employees and customers’ missions, making this an ideal platform,” said Ganesh Patil, COO of Alethix. “Our cultures are dedicated to excellence in delivering high-quality solutions, and we are proud to bring our team of technology experts to market with IntelliBridge and continue to deliver on solving complex mission challenges.”

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

About IntelliBridge

IntelliBridge is a premier partner to defense, federal law enforcement, and civilian agency customers who helps solve complex technology, intelligence, and mission support challenges. Headquartered in McLean, Virginia, with locations and staff nationwide, IntelliBridge makes its customers successful by delivering best-in-class solutions through a combination of deep domain expertise, advanced technology, and passion for the mission.  IntelliBridge is a portfolio company of Enlightenment Capital. To learn more or join the team, visit www.intellibridge.us.

 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.

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KippsDeSanto & Co. Advised HHB Systems on its sale to Vectrus, Inc.

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KippsDeSanto & Co. Advised HHB Systems on its sale to Vectrus, Inc.

KippsDeSanto & Co. is pleased to announce the sale of its client, HHB Systems (“HHB” or the “Company”), to Vectrus, Inc. (“Vectrus”).
Based in Springfield, VA, HHB is a leading provider of information systems technology, enterprise operations, facilities management, and technical assistance to Federal customers across the Intelligence Community.

The Company has developed a highly regarded reputation and long-standing relationship with various Intelligence Community agencies by leveraging its capabilities and extensive subject matter expertise around unique mission critical programs. HHB’s strong past performance has led to expanded work under its existing contract vehicles and has positioned the Company for continued growth.

The acquisition of HHB will augment Vectrus’ position as a leader in the converged infrastructure market. Additionally, HHB expands Vectrus’ integrated capabilities and broadens its reach within the Intelligence Community.

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

  • Continued demand for access to prime, full and open awards as a channel to drive growth
  • Deep domain and subject matter expertise, particularly when coupled with long-term relationships, are critical investment considerations
  • Emphasis on operational synergies and complementary solutions to enhance and build upon existing capability sets

 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

Vectrus Acquires HHB Systems, Advancing Physical and Digital Infrastructure Technologies within the Intelligence Community

– Further expands reach into the Intelligence Community as a Converged Infrastructure Provider
– Enhances Capabilities in Facility Engineering, Design, and Planning, as well as Asset Management & Logistics
– Bolsters Information Technology, Network Communications Services, and Operational Technologies Competencies and Solutions

COLORADO SPRINGS, Colo., Jan. 4, 2021 /PRNewswire/ — Vectrus, Inc. (NYSE: VEC) announced today that it has acquired HHB Systems, a leading provider of high-end solutions for facilities management, logistics, engineering, enterprise operations, and asset management solutions supporting Intelligence Community (IC) projects. Additionally, HHB provides information technology and cybersecurity solutions to select clients.

Founded in 2003, HHB Systems brings comprehensive and proven capabilities which advance Vectrus’ ability to deliver innovative, integrated solutions and further differentiates the company as a leader in the converged infrastructure market.

“The acquisition of HHB brings integrated solutions that support physical and digital infrastructures within the intelligence community and creates a stronger platform from which we can deliver fully converged solutions across all our clients’ missions,” said Sue Deagle, Senior Vice President and Chief Growth Officer of Vectrus. “I am delighted to welcome the talented employees of HHB to Vectrus. We look forward to building upon the HHB team’s past performance, reputation, and long-standing and trusted relationships in the Intelligence Community.”

Headquartered in Springfield, Virginia, HHB Systems has a 17-plus-year history of providing technology-enabled services and solutions to the Intelligence Community. The company has more than 50 highly skilled employees, 95% of which are cleared at Top Secret or above.

“Importantly, the acquisition of HHB further builds on our recently announced acquisition of Zenetex and together these acquisitions advance Vectrus’ transformation into a higher-value, technology-enabled and differentiated platform. The Zenetex and HHB teams work together in the Intelligence Community market today, and the expanded opportunities under Vectrus to reach our existing DoD and IC clients open the aperture to even greater growth,” Ms. Deagle concluded.

Vectrus funded the acquisition from cash on hand and its revolving line of credit.

About Vectrus

Vectrus is a leading provider of global service solutions with a history in the services market that dates back more than 70 years. The company provides facility and base operations; supply chain and logistics services; information technology mission support; and engineering and digital technology services primarily to U.S. government customers around the world. Vectrus is differentiated by operational excellence, superior program performance, a history of long-term customer relationships and a strong commitment to its clients’ mission success. Vectrus is headquartered in Colorado Springs, Colo., and includes about 7,100 employees spanning 148 locations in 26 countries and territories. In 2019, Vectrus generated sales of $1.4 billion. For more information, visit the company’s website at www.vectrus.com or connect with Vectrus on Facebook, Twitter, and LinkedIn

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KippsDeSanto & Co. advises Zenetex, LLC on its sale to Vectrus, Inc.

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KippsDeSanto & Co. advises Zenetex, LLC on its sale to Vectrus, Inc.

KippsDeSanto & Co. is pleased to announce the sale of its client, Zenetex, LLC (“Zenetex” or the “Company”), to Vectrus, Inc. (“Vectrus”) (NYSE: VEC).

Headquartered in Herndon, VA, Zenetex provides mission-focused lifecycle military aviation and advanced engineering and information technology (“IT”) solutions for military and national security clients.

Zenetex primarily supports Naval Air Systems Command (“NAVAIR”), various other U.S. Department of Defense (“DoD”) and Intelligence Community (“IC”) customers, and various foreign militaries, with embedded positions on enduring programs of record and various classified defense programs. The Company has extensive expertise spanning integrated logistics, advanced engineering, IT, research, development, test, and evaluation (“RDT&E”), security services, and full-spectrum maintenance, repair & overhaul (“MRO”) services. Since 2008, Zenetex has grown to ~2,000 employees with more than $200 million in annual revenue and $700 million of contracted backlog.

The Zenetex acquisition is expected to accelerate Vectrus’ converged infrastructure strategy through the addition of critical new capabilities, including high-end integrated logistics and MRO support services. The transaction will also broaden Vectrus’ presence within NAVAIR and the IC and add new Foreign Military Sales customers.

We believe this transaction demonstrates several key trends in the government services mergers and acquisitions (“M&A”) market:

  • Strategic buyers are using M&A to accelerate organic growth strategies and add new capabilities and customers
  • Buyers continue to value prime, F&O contracts and backlog, along with infrastructure maturity and rapid growth
  • Despite the economic volatility created due to the COVID-19 pandemic, M&A demand remains strong for well-positioned companies

 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

Vectrus to Acquire Zenetex, Accelerating Converged Infrastructure Strategy and Further Expanding Intelligence and Foreign Military Client Portfolio

  • Secures Vectrus as a leader in the converged infrastructure market by expanding integrated capabilities in Logistics and Supply Chain, Security, Advanced Engineering, IT, and International Readiness Solutions
  • Expands Vectrus content at client installations, facilities, and bases with the addition of mission-critical support services for vital defense aviation programs
  • Broadens reach into the Intelligence Community and adds new Foreign Military Sales clients
  • Increases backlog by more than $700 million and provides a foundation for continued growth
  • Expected to be accretive to 2021 Adjusted Diluted EPS and Adjusted EBITDA margin

COLORADO SPRINGS, Colo., Dec. 28, 2020 – Vectrus, Inc. (NYSE: VEC) announced today that it has signed a definitive agreement to acquire Zenetex, a leading provider of technical and strategic solutions focused on enabling mission readiness, performance, and enhanced protection for defense and national security clients globally. The acquisition adds critical new capabilities which will accelerate Vectrus’ converged infrastructure strategy and expands the company’s client base with new DoD, intelligence and foreign military clients. The transaction is valued at approximately $112 million, net of $11 million of expected tax benefits.

“I am excited to welcome the Zenetex employees to Vectrus,” said Chuck Prow, president and chief executive officer of Vectrus. “This important acquisition significantly enhances our capabilities across a number of high priority clients and accelerates our strategy to deliver a more integrated and comprehensive suite of solutions to our clients globally. Zenetex broadens our reach into the Intelligence Community and expands our engineering and digital technology offerings, which is critical as we expand our capabilities to help our clients’ transition to a more instrumented and converged approach to supply chain and facility management.”

Strategic Benefits and Transaction Highlights:

  • Strengthens Position as Leading Fully-Integrated Provider in the Converged Infrastructure Market: Brings integrated security capabilities that provide systematic protection of physical assets, IP, and computer systems, which further builds on Vectrus’ integrated electronic security solutions that protect thousands of facilities and assets.
  • Adds Higher End Integrated Logistics: Brings people, skills, knowledge, equipment, tools, and technical data to establish, execute and maintain logistics policies, processes and procedures, which builds on Vectrus’ forward-deployed operational logistics capabilities.
  • Expands Operations and Maintenance Services to Increase Content and Scope at Client Installations: Provides mission-critical readiness services for legacy and next generation aircraft through full spectrum Maintenance, Repair & Overhaul services that include “backshop” operations, lab systems, and weapon subsystems, which increases Vectrus’ overall addressable market and content at client installations, facilities, and bases.
  • Expands Intelligence and Federal Client Footprint: Provides unique access to highly attractive Intelligence Community clients and advances the company’s Navy campaign to include Naval Air Systems Command and Naval Supply Systems Command.
  • Adds Foreign Military Sales (FMS) Clients and Expertise: The company’s FMS services supports more than 40 countries, including Qatar, Malaysia, Spain, Morocco, Kuwait, Denmark, Australia, Canada, and provides significant channels for future growth. The company’s legacy and experience related to FMS has resulted in a recent award to provide an International Readiness Operational Software Management System, a prototype to improve readiness initiatives, accelerate product delivery, and optimize the reliability of operational and aviation readiness for foreign partners abroad.
  • Strong Backlog and Growth Outlook: Zenetex is at the front end of significant new business awards with over $700 million in contract backlog that provides strong revenue visibility and a foundation for continued growth.

Forward-Looking Safe Harbor Statement

“Zenetex and Vectrus make an extremely powerful combination and I couldn’t be happier with this next step in our team’s journey,” said Mark Green, chairman and chief executive officer of Zenetex. “Our culture, mission, vision, and values are strongly aligned and founded on delivering successful service in support of our clients’ critical missions. The Zenetex capabilities, client access, and high performing teams complement the existing portfolio at Vectrus and will add additional value to both company’s clients while serving new markets with the combined power of our people.”

About Vectrus

Vectrus is a leading provider of global service solutions with a history in the services market that dates back more than 70 years. The company provides facility and base operations; supply chain and logistics services; information technology mission support; and engineering and digital technology services primarily to U.S. government customers around the world. Vectrus is differentiated by operational excellence, superior program performance, a history of long-term customer relationships and a strong commitment to its clients’ mission success. Vectrus is headquartered in Colorado Springs, Colo., and includes about 7,100 employees spanning 148 locations in 26 countries and territories. In 2019, Vectrus generated sales of $1.4 billion. For more information, visit the company’s website at www.vectrus.com or connect with Vectrus on Facebook, Twitter, and LinkedIn.