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KippsDeSanto & Co. advises Synaptech, LLC on its sale to LMI, a portfolio company of Declaration Partners, Capitol Meridian Partners, and 22C Capital

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KippsDeSanto & Co. advises Synaptech, LLC on its sale to LMI, a portfolio company of Declaration Partners, Capitol Meridian Partners, and 22C Capital

KippsDeSanto & Co. is pleased to announce the sale of Synaptech, LLC (“Synaptech” or the “Company”) to LMI, a portfolio company of Declaration Capital Partners, Capitol Meridian Partners, and 22C Capital.

Headquartered in Colorado Springs, CO, Synaptech is a technical solutions provider in the National Security industry, providing modern, proprietary software solutions to organize, educate, train, and equip future space warfighters to understand the battlefield and make key decisions with confidence, speed, and clarity.

The Company specializes in delivering cutting-edge operational planning, modeling, simulation, and decision-making software that serves as the connective tissue throughout the U.S. Space Force. Specific core offerings include modeling & simulation, software development, artificial intelligence, agile project management, operational analysis, and user centered designs and experiences. Additionally, the Company’s flagship proprietary software solution, Rapid Analysis and Prototyping Toolkit for Resiliency (“RAPTR”), provides scalable and efficient analysis in multiple mission areas to help visualize the space warfighting domain.

The partnership with LMI will further accelerate Synaptech’s growth as the needs of the Company’s in-demand capabilities and proprietary solutions across the Space Force expand.

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

  • High-end, next-generation technologies in support of National Security missions remain attractive targets given increasing budgetary trends and growth opportunities;
  • Continued investments in the space economy has had knock-on effects contributing to the value of the technologies that protect that investment; and
  • Buyers with explicit growth strategies, industry knowledge, and private equity backing continue to deploy capital, particularly for companies with deep domain and subject matter expertise, established customer relationships, and differentiated proprietary technologies

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 175 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

LMI Expands Presence in Space Industry By Acquiring Synaptech

— Modeling and simulation software company addresses growing space threats

— Synaptech’s space expertise complements LMI’s work with DoD

Tysons, Va. – LMI, a provider of technology-enabled management consulting, logistics, and digital & analytics solutions to the U.S. government, today announced it has acquired Synaptech, which creates digital engineering, modeling, and simulation software for the national security and space industries.

“LMI is thrilled to be entering the fast-paced, growing space market by acquiring Synaptech, which protects our nation’s national security assets and provides senior leaders with physics-backed decisional options,” said Doug Wagoner, LMI’s president and CEO.

Founded in 2015 and headquartered in Colorado Springs, CO, Synaptech is an innovator in space defense through its proprietary software: the Rapid Analysis and Prototyping Toolkit for Resiliency (RAPTR). RAPTR provides an extensive, scalable architecture for modeling, simulation, analysis, and visualization for the space warfighting domain, as well as cross-domain warfare integration.

LMI’s expertise in logistics, deep analytics and technology will complement Synaptech’s modeling and simulation strengths, better positioning both companies to innovate and support the missions of their respective Department of Defense customers.

“LMI and Synaptech share the same vision, culture, and passion for creating innovative, mission-focused solutions that make this partnership a perfect match. The combination of LMI’s incredible talent, resources, and rich history of proven performance throughout the DoD, and Synaptech’s knowledge and extensive experience in the space domain will yield tremendous results for our customers within the national security space industry for years to come,” said Zac Gorrell and Elias Peroulas, CEO, CTO and co-founders of Synaptech who will lead LMI’s space business moving forward. Mr. Wagoner said, “We are excited to welcome Synaptech’s employees, the best and brightest in the space industry, to the LMI team where they will find colleagues just as passionate about applying technology to solve our nation’s greatest challenges. Chartered by President Kennedy in 1961 at the dawn of the space race, it is fitting that LMI is now entering the space marketplace to support a renewed space race where adversaries seek to disrupt and disable our dominance in space.”

Wagoner also stated, “To help our customers innovate at the pace of need, one must understand all discreet and interdependent operational domains from the sea floor and sea surface, to ground, air, cyber, and space. The acquisition of Synaptech enables LMI total multi-domain awareness at scale.”

In addition to LMI’s 60-plus years of partnership with the federal government, Synaptech brings an expansive record of operating with speed and agility to efficiently integrate people, processes, and technologies to solve customers’ most complex challenges with an operationally relevant timeframe.

KippsDeSanto & Co. served as exclusive financial advisor to Synaptech.

About LMI

LMI is dedicated to powering a future-ready, high-performing government, drawing from expertise in digital and analytic solutions, logistics, and management advisory services. We deliver integrated capabilities that incorporate emerging technologies and are tailored to customers’ unique mission needs, backed by objective research and data analysis. Founded in 1961 under the Kennedy Administration to solve the government’s most complex problems, LMI continues to enable growth and transformation, enhance operational readiness and resiliency, and ensure mission success for federal civilian and defense agencies.

Media Contact 

Robin Milton

(703) 727-8517

wmilton@lmi.org

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KippsDeSanto & Co. advises iNovex Information Systems Inc. on its strategic investment from Enlightenment Capital

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KippsDeSanto & Co. advises iNovex Information Systems Inc. on its strategic investment from Enlightenment Capital

KippsDeSanto & Co. is pleased to announce the strategic investment in its client, iNovex Information Systems Inc. (“iNovex” or the “Company”), by Enlightenment Capital (“Enlightenment”).

Headquartered in Maryland, iNovex is a provider of full-stack software development solutions focused on cybersecurity, signals intelligence, data analytics, and robotic process automation for the Intelligence Community.  The Company builds and supports key systems of record that address complex mission requirements critical to national security and enable the full continuum of mission management from sensor to finished intelligence data.

Enlightenment’s knowledge and expertise in the government and technology vertical will help accelerate growth and investments in innovative products and services to build a mid-tier Intelligence Community focused platform with a mission to support critical National Security programs.

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

  • Companies providing cybersecurity and advanced data & analytics solutions for high-profile Intelligence Community customers remain highly coveted in the market;
  • Strong preference for firms with prime positions supporting unique and notable intelligence programs of consequence with significant backlog, long-term visibility, a highly cleared employee base and exemplary past performance;
  • Continued demand for companies that are poised to capitalize on key market growth drivers (e.g., full stack software development, cybersecurity, data & analytics, RPA, AI/ML, cloud, mission management); and
  • Robust financial sponsor activity and appetite for investments, particularly for companies with leading market positions, differentiated mission-focused tech-enabled services capabilities, enduring customer relationships, employee-centric culture, and proven leadership 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 175 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 

Columbia, Maryland – November 30, 2022:  Enlightenment Capital, an Aerospace, Defense, Government & Technology (ADG&T) investment firm based in the Washington, DC area, announced it has made a strategic investment in iNovex, a provider of software solutions, cybersecurity, Signals Intelligence (SIGINT), data analysis, and robotic process automation for the Intelligence Community (IC).

“This partnership provides iNovex with the financial and strategic resources needed to build a mid-tier Intelligence Community focused platform with a mission to support critical National Security programs,” said Jason Rigoli, Partner at Enlightenment Capital. “Gary Daigle (CEO) and Bob Phibbons (President) have built an impressive business, which is a recognized leader in the community, and we are thrilled to partner with them. We plan to continue to invest in the platform and drive growth – both organically and through strategic M&A – to put the company in a position to better support its customers.”

“Enlightenment is our ideal investment partner, and we are thrilled to join forces with them as they understand the sector and the critical mission needs of the national security community,” said Gary Daigle, CEO of iNovex. “Securing an investment partner is an important piece of iNovex’s strategy and will accelerate our investments aimed at enhancing our products and services, driving innovation, and introducing key relationships to strengthen iNovex and bring more value to our customers.”

“Enlightenment’s partnership will greatly benefit our customers and employees, building upon the past successes of iNovex,” said Bob Phibbons, President of iNovex. “Enlightenment’s reputation and experience supporting companies within the Intelligence Community creates an exciting pathway that enables us to accelerate our growth while preserving our company’s culture.”

About iNovex

Founded in 2005 and headquartered in Columbia, MD, iNovex provides software development, cybersecurity, Signals Intelligence (SIGINT), data analysis, and robotic process automation to solve our customers’ toughest mission challenges in the federal government and commercial sectors. For more information, visit www.inovexcorp.com and follow us at www.linkedin.com/company/inovexcorp.

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 & Technology (ADG&T) sector. The firm partners with businesses that provide vital services, protect critical infrastructure, innovate cyber and data solutions, enhance decision making capabilities, engineer aerospace and space systems, safeguard national security, and endeavor to meet the challenges of today and tomorrow. For more information, visit www.enlightenment-cap.com and follow us at www.linkedin.com/company/enlightenment-capital.

KippsDeSanto MarketView Winter 2023

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

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KippsDeSanto’s DealView — Top 10 Merger & Acquisition (“M&A”) Deals of the Quarter(1)

KippsDeSanto & Co., an investment banking firm focused on serving growth-oriented Aerospace & Defense (“A&D”) and Government Technology Services (“GTS”) companies, is pleased to share its DealView – the “Top 10 M&A Deals of the Quarter” – for the quarter ended December 31, 2022.

Of the above transactions, the following were especially noteworthy:

The A&D deal of the quarter is Advent International’s (“Advent”) pending acquisition of Maxar Technologies (“Maxar”) (NYSE: MAXR). Maxar is a provider of advanced space technology solutions supporting both commercial and government markets, delivering secure and precise Earth imagery, geospatial intelligence, and data analytics. Advent has committed to provide $3.1 billion of equity financing for the deal, while the British Columbia Investment Management Corporation is also making a $1 billion minority equity contribution. Including debt, the deal is valued at $6.4 billion, marking one of the largest leveraged buyouts in 2022. As the U.S. government’s primary supplier of satellite imagery, recently securing a $3.2 billion agreement with the National Reconnaissance Office to provide imagery over the next 10 years, Maxar will remain a U.S.-controlled and operated company. Under the terms of the definitive merger agreement, Advent has agreed to acquire all outstanding shares of Maxar common stock for $53.00 per share in cash, representing a premium of approximately 129% over Maxar’s closing stock price of $23.10 on December 15, 2022, the last full trading day prior to this announcement. As a private company, Maxar hopes to accelerate vital investments in next-generation satellite technologies and data insights, including advanced machine learning and 3D mapping; successfully deploy the next-generation WorldView Legion imaging constellation, a program which has been plagued by delays; further grow its Earth Intelligence and Space Infrastructure businesses; and pursue select, strategic M&A to further enhance its portfolio of solutions. This transaction highlights continued consolidation in the satellite ecosystem this year, following Eutelsat S.A.’s pending merger with OneWeb Global, which will create a fully mutualized network of Low Earth Orbit (“LEO”) and Geosychronous Equatorial Orbit (“GEO”) satellites, and SES’s $450 million acquisition of DRS’s satellite communications (“SATCOM”) business, which will create a multi-orbit SATCOM provider to federal customers. The Advent and Maxar acquisition requires regulatory and stockholder approvals, and it is expected to close in mid-2023.

The GTS deal of the quarter is the acquisition of Grove Resource Solutions, Inc. (“GRSi”) by DLH Holdings Corp (“DLH”) (NASDAQ: DLHC). Headquartered in Bethesda, MD, GSRi is an industry-leading provider of a broad array of cloud-based enterprise modernization and cyber security solutions to Federal Civilian, Health IT, Defense, and commercial sectors.  With approximately 700 employees, GRSi brings nearly two decades of experience serving the National Institutes of Health (“NIH”), U.S. Navy, and U.S. Marine Corps to DLH. GRSi was purchased for $185.0 million, or $157.9 million net of transaction-related tax benefits worth approximately $27.1 million on a net present value basis. The purchase price includes $178.0 million of cash and $7.0 million of equity. DLH estimates that GRSi will contribute annualized revenue of approximately $140 million to the Company going forward, and the firm’s backlog was approximately $550 million at closing. DLH plans to leverage GRSi’s high-end IT and technical capabilities, highly credentialed workforce, and reputation for excellence to accelerate growth for the unified company. This deal highlights the increasingly selective M&A strategies of public GTS companies as they prioritize scale as a key target discriminator. In the fourth quarter of 2022, public buyers accounted for just 15% of GTS M&A activity compared to over 30% in the fourth quarter of 2021. This transaction was announced December 8, 2022. KippsDeSanto & Co. served as the exclusive financial advisor to DLH.

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 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 175 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 non-banking 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.

KippsDeSanto & Co. Advises Blackhawk Aerospace on its sale to New State Aviation Holdings, a portfolio company of New State Capital Partners

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KippsDeSanto & Co. Advises Blackhawk Aerospace on its sale to New State Aviation Holdings, a portfolio company of New State Capital Partners

KippsDeSanto & Co. is pleased to announce the sale of its client, Blackhawk Aerospace (“Blackhawk” or the “Company”) to New State Capital Partner’s general aviation-focused platform, New State Aviation Holdings (“NS Aviation”). Blackhawk is comprised of Blackhawk Modifications, Inc. (“BMI”), Blackhawk Aerospace Solutions, LLC (“BAS”), and Blackhawk Aerospace Technologies, Inc. (“BAT”). Blackhawk joins NS Aviation’s anchor aviation investment AVEX, which was acquired in December 2021. Both companies will continue to operate under their existing brands while broadening NS Aviation’s offerings through collaboration.

Headquartered in Waco, TX, with other locations in Columbia, MO and Huntsville, AL, Blackhawk is a leading provider of aircraft performance upgrades, primarily for the general aviation and government turboprop markets with a focus on engine and avionic upgrades. Blackhawk’s aircraft upgrades significantly improve aircraft performance by increasing climb, cruise, fuel efficiency, payload capacity, safety, and mission capability in special operations such as skydiving, humanitarian, and surveillance. Since its founding in 1999 as BMI, Blackhawk strategically added divisions for government support, maintenance, avionics, composites, and aircraft sales. The composites business is not included in this transaction and will continue independently operating under a new brand and name.

Since inception, Blackhawk has developed and obtained a wide range of Federal Aviation Administration Supplemental Type Certificates (“STCs”) and various corresponding foreign validations for leading turboprop platforms. Specifically, the Company has significant experience working with all King Airs as well as other aircraft that use the world’s most popular engine in its class, the Pratt & Whitney Canada PT6A. Additionally, the Company leverages its avionic STCs to upgrade a variety of popular systems, to include avionics from Collins Aerospace, Garmin, and Honeywell. Blackhawk Aerospace has served customers across multiple platforms and the “Blackhawk” brand is recognized throughout the industry as the go-to provider for aircraft engine and avionic upgrades.

AVEX is an authorized distributor and recommended service center of Daher TBM turboprops and has delivered more than 1,000 TBM aircraft currently in service. AVEX also manages a robust maintenance and aftermarket services business, providing a one-stop solution and a high level of customer service to TBM owners across the country.  AVEX’s extensive experience and knowledge in the aircraft aftermarket services market, coupled with the strength of Blackhawk’s brand, market reputation, and upgrade offerings, is expected to help accelerate NS Aviation’s growth.

With Blackhawk as part of its portfolio, NS Aviation will now offer a broader suite of services and solutions to the light turbine market across a wider variety of platforms.

We believe this transaction demonstrates several key trends in the Aerospace & Defense M&A environment:

  • Emphasis on highly differentiated offerings with a focus on delivering proprietary performance-enhancing solutions for aircraft engine and avionic upgrades
  • Strong outlook and growth prospects within the Business Jet and General Aviation markets
  • Continued private equity interest in Aerospace & Defense targets that add immediate scale and unique access to strategic partnerships within the industry

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 175 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

NEW STATE AVIATION HOLDINGS ACQUIRES BLACKHAWK AEROSPACE

Performance improvement leader joins Daher TBM provider AVEX, expanding general aviation platform

LARCHMONT, NY – January 3, 2023 – New State Capital Partners (“New State”) announced today that its general aviation-focused platform, New State Aviation Holdings (“NS Aviation”), has acquired Blackhawk Aerospace (“Blackhawk” or “the Company”), a recognized leader in aircraft performance improvements. Blackhawk joins NS Aviation’s anchor aviation investment AVEX, a leading provider of sales and maintenance for the Daher TBM turboprop aircraft, which was acquired in December 2021. AVEX and Blackhawk will continue to operate independently, while working together to expand NS Aviation’s offerings.  Blackhawk’s management will remain with the Company. Terms of the transaction were not disclosed.

Headquartered in Waco, TX, with more than 60 employees, Blackhawk provides engine upgrades for a broad range of turboprop planes, improving an aircraft’s speed, safety, and climb capabilities, while extending engine life. The Company serves customers worldwide in the commercial and government markets. Blackhawk was founded in 1999 as Blackhawk Modifications, Inc, and added divisions for government support, maintenance, avionics, composites, and aircraft sales. The composites business is not included in the transition and will remain independent.

“This transformative acquisition more than doubles the size of our business and allows us to expand aircraft platforms serviced,” said Chad Cundiff, CEO of New State Aviation Holdings. “AVEX is a market leader in sales, brokerage and maintenance of the Daher TBM, and Blackhawk is the market leader in turboprop engine upgrades. Together, they will allow New State Aviation Holdings to offer a broader suite of services and meet more needs of light turbine aircraft owners, across a variety of aircraft manufacturers.”

“We are very excited to join New State Aviation Holdings and partner with the folks at AVEX,” said Blackhawk CEO Jim Allmon. “Our family of companies shares a singular focus: to increase an aircraft’s capabilities to unrivalled heights while maintaining the highest level of safety possible. We look forward to working with Chad and the rest of the New State Aviation team to further expand our services.”

“We are thrilled to have Blackhawk join our platform”, added Daniel Han, Senior Principal at New State and Chairman of New State Aviation Holdings.  “As the market leader in engine upgrades and STC development, Blackhawk represents a significant step towards our goal of being the premier service provider for the light turbine market.  More importantly, the outstanding reputation and culture of Blackhawk, focused on people and customers first, will mesh seamlessly with that of AVEX.  We believe this combination will build on the strengths at AVEX, expand our capabilities and enable us to provide the highest levels of service, quality and expertise in general aviation.”

Strong demand for AVEX and Blackhawk products and services has driven record backlogs for both companies and signals a bright future for New State Aviation Holdings.

About New State Capital Partners

New State Capital Partners is an entrepreneurial-minded private equity firm that strives to be nimble, decisive, and cooperative. New State prides itself on a long-term outlook, approaching each potential investment as an opportunity to create lasting and valuable relationships with company founders and especially independent sponsors. The firm has the ability to invest up to $100 million in equity per transaction and seeks to invest in market-leading companies with $8 million to $40 million of EBITDA in the areas of business services, industrials, and consumer. New State and its affiliates have invested in more than 35 companies to date. For more information visit www.newstatecp.com

 About Blackhawk Aerospace

Blackhawk Aerospace is the recognized leader in performance improvements for turboprop aircraft. Founded in 1999 in Waco, Texas, the company serves customers worldwide in the commercial and government markets. Today, Blackhawk Aerospace is comprised of Blackhawk Aerospace Upgrades, Blackhawk Aerospace Solutions, and Blackhawk Aerospace Technologies. A worldwide network of approved dealers and service support centers complements Blackhawk’s U.S. facilities. Visit www.blackhawk.aero for more information.

https://www.blackhawk.aero/company/.

 About AVEX

AVEX is a leading aircraft dealer in North America with a robust maintenance and aftermarket services platform focused on the Daher TBM. With more than 1,000 aircraft in service, the TBM has an enviable position in the single-engine turboprop market.  AVEX was founded in 1985 and has operations in Colorado and California. For more information visit www.newAVEX.com.

 Media contact:

Lambert

Joanne Lessner

jlessner@lambert.com

212-222-7436