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KippsDeSanto & Co. advises BEI Precision Systems & Space Company, Inc., a portfolio company of J.F. Lehman & Company, on its sale to Quantic Electronics, a portfolio company of Arcline Investment Management

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KippsDeSanto & Co. advises BEI Precision Systems & Space Company, Inc., a portfolio company of J.F. Lehman & Company, on its sale to Quantic Electronics, a portfolio company of Arcline Investment Management

KippsDeSanto & Co. is pleased to announce the sale of BEI Precision Systems & Space Company, Inc. (“BEI Precision” or the “Company”), a portfolio company of its client J.F. Lehman & Company, to Quantic Electronics, a portfolio company of Arcline Investment Management.

Headquartered in Maumelle, AR, BEI Precision designs and manufactures the highest performing and most resilient and reliable position feedback sensors and frequency reference technologies for mission-critical space, land, air, and sea applications. BEI Precision has a diverse portfolio of proprietary technologies, including state-of-the-art space encoders, crystal oscillators, and other military sensors.

The Company has built a robust portfolio of sole-sourced, long-term contracts in partnership with key prime partners and government end customers. As a result, BEI Precision’s products are designed into a number of classified efforts as well as other high priority programs across space and defense. BEI Precision also has a growing footprint within the high growth and emerging commercial space market which it addresses with its proprietary encoder and oscillator product offerings. The Company’s established presence across numerous well-funded and strategically important market segments positions it well for continued growth in the future.

We believe this transaction highlights several key trends in the M&A market:

  • Space remains a highly coveted market segment because of its importance to National Security objectives
  • Strong preference for defense and space companies with technically differentiated, proprietary products and embedded positions on sought-after programs
  • Sponsors continue to seek acquisitions with accomplished management teams, strong revenue and earnings visibility, and highly actionable growth levers

 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 Releases

J.F. Lehman & Company Completes Sale of BEI Precision

NEW YORK – J.F. Lehman & Company (“JFLCO”), a leading middle-market private equity firm focused exclusively on the defense, aerospace, maritime, government and environmental industries, announced today that investment affiliates have sold BEI Precision Systems & Space Company, Inc. (“BEI Precision” or the “Company”) to Quantic Corporate Holdings, Inc. (“Quantic Electronics”), a portfolio company of Arcline Investment Management. Terms of the transaction were not disclosed.

BEI Precision designs, engineers, and manufactures highly accurate, resilient, and reliable position feedback sensors and frequency reference technologies for mission-critical space, land, air, and sea applications. Headquartered in Maumelle, AR, the Company’s products are designed into many of the U.S. government’s highest priority, long-life programs.

Since acquiring BEI Precision in 2017, JFLCO worked closely with management to successfully identify and integrate two strategic acquisitions, overhaul the Company’s R&D and business development functions, and optimize manufacturing operations. In turn, the Company has developed and delivered industry-leading products for numerous programs of national significance, resulting in substantial revenue and earnings growth.

“Our successful partnership with management has enabled BEI Precision to transform from a small, stable business unit of a larger corporate parent into a standalone, high-growth enterprise with state-of-the art products occupying sole-source positions on high priority space, electronic warfare and radar programs,” said Steve Brooks, Chairman of BEI Precision’s Board of Directors and Partner at JFLCO.

Mark Mirelez, President and Chief Executive Officer of BEI Precision, commented, “Today’s milestone is a validation of the market leading position, operational excellence, and culture that we have worked tirelessly to achieve. We are immensely grateful for JFLCO’s support and look forward to continuing to deliver on future growth opportunities with our new partners at Quantic Electronics.”

“We are extremely proud of the accomplishments Mark and his team achieved during our ownership,” added Will Hanenberg, a member of BEI Precision’s Board of Directors and Managing Director at JFLCO. “As a result of their efforts, BEI Precision is uniquely-suited to address the dynamic requirements of its demanding space and military customers, and we believe Quantic Electronics is the ideal partner to help guide the Company through the next phase of its growth.”

KippsDeSanto & Co. served as exclusive financial advisor to JFLCO and Jones Day served as lead legal counsel. BakerHostetler provided legal support related to international trade, government contracts, and defense security compliance matters.

Quantic™ Electronics Acquires BEI Precision

Maumelle, AR, August 17, 2021 — Quantic™ Electronics (“Quantic”), a portfolio company of Arcline Investment Management (“Arcline”), today announced the acquisition of BEI Precision (“BEI”) from J.F. Lehman & Company. BEI designs, engineers, and manufactures highly accurate, resilient, and reliable position feedback sensors and frequency reference technologies for mission-critical space, land, air, and sea applications. The Company’s products are designed into many of the U.S. government’s highest priority, long-life programs.

“Our strategy is to acquire world-class, mission-critical-electronic component manufacturers with significant long-term growth potential. BEI’s technology, products, and people fit perfectly with this strategy,” said Kevin Perhamus, President and CEO of Quantic Electronics. “This acquisition further establishes Quantic as a leading supplier of critical components for space, aerospace, and defense applications. BEI brings more than 60 years of experience designing and manufacturing proprietary optical encoders, scanners, accelerometers, and frequency products. We’re excited to partner with the BEI team to continue building upon this heritage to offer new and exciting products for our shared customers.”

Mark Mirelez, President and Chief Executive Officer of BEI Precision, commented, “Today’s milestone is a validation of the market leading position, operational excellence, and culture that we have worked tirelessly to achieve. We look forward to continuing to deliver on future growth opportunities with our new partners at Quantic Electronics.”

Evercore served as financial advisor to Quantic.

About Quantic Electronics

Quantic is an electronic component company focused on defining and delivering the future of mission-critical electronics. We have over a century of combined experience as reliable problem-solvers and trusted partners in military, aerospace, industrial and commercial markets. www.quanticnow.com.

About Arcline Investment Management

Arcline is a growth-oriented private equity firm that seeks to invest in thriving middle market businesses with structurally recurring revenue streams in high value industries. Arcline’s differentiated investment strategy combines deep business model expertise, proactive thematic research, an unrelenting focus on the upside and a collaborative, management-first approach to value creation. The firm’s primary sectors of interest include defense, aerospace, critical infrastructure services, industrial & biopharmaceutical technology, life sciences and specialty materials. Launched in 2019, Arcline currently has $4.3 billion in cumulative capital commitments. The firm’s more than 35 professionals are predominantly based in New York and San Francisco. For more information about Arcline’s investment philosophy and values, visit www.arcline.com. 

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KippsDeSanto & Co. Advises LeapPoint on its sale to Renovus Capital Partners

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KippsDeSanto & Co. Advises LeapPoint on its sale to Renovus Capital Partners

KippsDeSanto & Co. is pleased to announce the sale of its client, LeapPoint (“LeapPoint” or the “Company”), to Renovus Capital Partners (“Renovus”).

Headquartered in Reston, VA, LeapPoint is a leading digital consulting firm that delivers cloud application solutions to drive enterprise change and unlock tangible and quantifiable value for its customers to satisfy the increasing demand for integrating cloud applications in the marketplace.  The Company’s customers include Fortune 500 and blue-chip commercial customers across the finance, healthcare, and consumer goods verticals as well as select government agencies.

Leveraging intimate understanding of complex system interoperability and symbiotic partnerships with innovative technology firms, LeapPoint helps customers develop and implement formalized roadmaps to optimize enterprise efficiency and eliminate challenges associated with siloed functional areas (e.g., IT, marketing, finance, and HR) operating on myriad systems.

LeapPoint’s partnership with Renovus will enable the Company to fuel its end-to-end connected work approach for various technology implementations to become a leading provider for consolidating and connecting cloud applications across the enterprise.

We believe this transaction highlights several key trends in the digitial consulting M&A market:

  • Significant market demand for highly-skilled employees and in-demand capabilities focused on technology and integrating cloud applications
  • Continued demand for innovative companies that are poised to capitalize on key market growth drivers (i.e., digital acceleration, marketing technology rationalization, and hyper-personalization at scale)
  • Private equity continues its appetite to deploy capital through new platform investments, particularly for companies with strong management teams / highly-skilled employees and differentiated technological capabilities in growing 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.

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

Renovus Capital Partners Announces Strategic Acquisition of Leading Digital Consulting Firm, LeapPoint

RESTON, Va. and WAYNE, Pa., July 21, 2021 /PRNewswire/ — Renovus Capital Partners (“Renovus”), a Philadelphia-area private equity firm, announced today that it has acquired LeapPoint, LLC (“LeapPoint”), the industry-leading digital consulting firm specializing in connecting work, technology, and talent to drive unparalleled business experiences and outcomes.

Recognized by Forbes and Vault as a top consulting firm four years in a row, the acquisition follows a period of record-setting growth for LeapPoint as it continues to drive digital transformation for some of the world’s largest companies. As both an Adobe Gold partner and Workfront partner of the year, Adobe’s acquisition of Workfront maximized LeapPoint’s ability to deliver deeper and broader solutions to clients across finance, healthcare, and retail.

“During and post COVID, the importance of connected digital solutions to improve customer and employee experiences is greater than ever,” said Jesse Serventi, Founding Partner at Renovus. “LeapPoint’s innovative approach to connected digital experiences is transforming the biggest companies in the world. Under our partnership, we plan to help LeapPoint scale even faster to a larger set of enterprise clients.”

“This is an exciting and pivotal time for LeapPoint employees, clients and the customers they serve,” said LeapPoint CEO Nicholas DeBenedetto. “Renovus shares our people-first mindset and we are excited to work with them to bring rocket fuel to our end-to-end Connected Work breadth of services for Adobe, Adobe Workfront and other technology implementations. Together, we align to create a driving force and disruptor in the marketplace.”

LeapPoint’s multidisciplinary team of consultants consists of former industry practitioners across vertical markets committed to delivering a human-centered approach to unlocking how people and systems come together. The LeapPoint executive leadership team will remain unchanged and CEO Nicholas DeBenedetto will hold a seat on the Board of Directors.

KippsDeSanto & Co. served as the sell-side advisor to LeapPoint. DLA Piper served as legal counsel and Cherry Bekaert as accounting advisor to Renovus.

About LeapPoint

LeapPoint Consulting is changing the way companies connect work, technology, and talent to solve big business challenges and drive successful outcomes. Established by Big 4 alumni who sought more flexibility and agility in meeting clients’ most critical business needs, LeapPoint is committed to making life and experiences fundamentally better for employees, customers and those they serve. As the go-to Adobe and Adobe Workfront partner in financial services, healthcare and retail, LeapPoint’s break-through Connected Work™ services are the essential framework for the Future of Work. For more information, visit www.leappoint.com. To learn more about LeapPoint and its Connected Work services, download LeapPoint’s Connected Work ebook.

About Renovus

Founded in 2010, Renovus Capital Partners is a private equity firm specializing in the Knowledge and Talent industries. Renovus, based in the Philadelphia area, manages $1 Billion across several investment vehicles. The firm’s current portfolio includes over 20 U.S. based businesses specializing in educational technology and content, higher education, corporate learning and development, healthcare services and technology services. Renovus typically partners with founder led businesses, leveraging its industry expertise and access to debt and equity capital to make operational improvements, pursue tuck-in acquisitions and oversee strategic growth initiatives. More information can be found at www.renovuscapital.com

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KippsDeSanto & Co. advises Occam’s Razor Technologies, LLC on its sale to Avantus Federal, a NewSpring Holding Company

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KippsDeSanto & Co. advises Occam’s Razor Technologies, LLC on its sale to Avantus Federal, a NewSpring Holding Company

KippsDeSanto & Co. is pleased to announce the sale of its client, Occam’s Razor Technologies, LLC, (“ORT” or the “Company”), to Avantus Federal, LLC, (“Avantus”) a NewSpring Holding Company.

Headquartered in Reston, VA, ORT is a leading provider of cyber solutions focused on cyber tool development and assessment in support of classified Intelligence Community (“IC”) and Department of Defense (“DoD”) missions.  The Company provides the full lifecycle of cyber tools and products from development through deployment.

The ORT acquisition deepens Avantus’ position with national security customers and augments its cyber offerings. These capabilities and solutions will accelerate the combined entities position as an industry leader, providing these cyber solutions across a growth and broader set of Federal Government customers.

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

  • Strong demand for Company-developed intellectual property and advanced engineering and cyber solutions capabilities
  • Unique, franchise positions within key Federal customers at the forefront of priority government missions
  • Financial sponsors continued appetite to deploy capital through new platform investments and bolt-on acquisitions to existing portfolio companies, particularly for those assets with long-term contracts, strong management teams, and differentiated capabilities
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

Avantus Federal Announces Acquisition of Occam’s Razor Technologies, LLC 

McLean, VA – August 23, 2021 Avantus Federal, a NewSpring Holding Company and a leader in mission-focused, service-driven solutions, has acquired Occam’s Razor Technologies, LLC., a Reston, VA based leading provider of cyber solutions focused on cyber tool development and assessment in support of high-value Defense, Intelligence and National Security mission requirements. This acquisition further enhances Avantus’ cyber operations and solutions platform through differentiated technology and delivery capacity at scale, bringing an additional suite of capabilities to the company’s extensive base of federal government customers.

Occam’s Razor Technologies (“ORT”), founded in 2011, primarily supports the Intelligence and Defense communities and develops and delivers a robust portfolio of technologies, cyber tools, and integrated software solutions to some of the nation’s cutting-edge cyber challenges. The company has a proven ability to win large-scale, prime contracts leveraging its deep technical and subject matter expertise. Similar to the mission and values of Avantus, ORT’s business model excels by attracting, retaining and investing in world-class, highly cleared talent who thrive in partnering with clients to solve their toughest National Security challenges.

“For more than 10 years, Occam’s Razor Technologies has built a company committed to developing innovative solutions for its clients. We work with extreme focus to partner and merge with companies like ORT, who deliver innovation creatively to the Nation’s highest-impact missions,” said Andy Maner, Chief Executive Officer at Avantus. “ORT’s mix of elite cyber and software capabilities and its dedication to employee growth are just two of the many reasons this company is a great fit with Avantus’ capabilities and offerings and will fuel combined growth at our shared and new customers.”

Michael Nordfelt, founder and President of Occam’s Razor Technologies, added, “We are very excited to join forces with Avantus. We will continue to provide highly differentiated cyber and software offerings to our government clients and grow with the Avantus enterprise. Our organizations collectively focus on growth, mission-focused values, investing in employees and committing to diversity and inclusion. Tapping into both of our organizations’ expertise will allow us to empower our eminence and achieve mission success.”

ORT joins the Avantus Enterprise built on mission impact and technology enablement. Its cyber expertise and technologies will infuse new capabilities into Avantus’ growing capabilities and service offerings.

KippsDeSanto and Covington & Burling LLP served as advisor and legal counsel, respectively to Occam’s Razor Technologies. Blank Rome LLP served as counsel to Avantus.

About Avantus Federal

Avantus Federal, a NewSpring Holdings company, is a mission-focused services and solutions company headquartered in McLean, VA. Drawing upon its heritage companies’ histories of consistent growth and high performance in the federal services market, Avantus ensures eminence is earned, sustained and grown.

Avantus’ services and solutions are designed, tailored, and executed based on our long history of helping our Homeland Security, Defense, Intelligence, and Federal Civilian customers solve complex challenges. Visit Avantus Federal at www.avantusfederal.com.

About NewSpring Holdings

NewSpring Holdings, the dedicated, diversified holding company within NewSpring with a strategy focused on control buyouts and platform builds, brings a wealth of knowledge, experience, and resources to take profitable, growing companies to the next level through acquisitions and proven organic methodologies. Founded in 1999, NewSpring partners with the innovators, makers, and operators of high-performing companies in dynamic industries to catalyze new growth and seize compelling opportunities. The Firm manages over $2.0 billion across four distinct strategies covering the spectrum from growth equity and control buyouts to mezzanine debt. Partnering with management teams to help develop their businesses into market leaders, NewSpring identifies opportunities and builds relationships using its network of industry leaders and influencers across a wide array of operational areas and industries. Visit NewSpring at www.newspringcapital.com.