KippsDeSanto & Co. Advises Ray Group International, LLC on its Sale to PricewaterhouseCoopers LLP

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KippsDeSanto & Co. is pleased to send you the attached press release announcing the acquisition of our client, Ray Group International, LLC (“Ray Group”), by PricewaterhouseCoopers LLP (“PwC”).  The acquisition of Ray Group will enable PwC’s Washington Federal Practice to expand its legacy business advisory presence within the Department of Veterans Affairs (“VA”) and uniquely position the newly combined entity as a leader in Health information technology (“HIT”) services across VA and throughout the federal government.

Located in Washington, DC, Ray Group is a leading provider of HIT solutions and professional services throughout the VA, addressing some of the most critical mission challenges related to HIT infrastructure modernization, enterprise architecture, and Program Management Office (“PMO”) accountability.  Specifically, the Company analyzes the structure, enterprise components, and relationships of an organization with the goal of improving the efficiency of the enterprise as a whole; develops enterprise architecture strategy and structure to support mobile computing platforms; and analyzes HIT needs through a visualization-based approach to project planning and requirements definitions, which allows customers to utilize simulations before spending time and money developing specific code.

Ray Group serves a diverse set of customers within the VA and provides technical expertise for mission support, including, but not exclusive to, reengineering legacy systems, facilitating information sharing, and supporting PMO with program delivery.  Within the VA, the Company primarily serves the Office of Information & Technology (“OI&T”) and the Chief Technology Officer (“CTO”).  These offices are tasked with modernizing VA HIT infrastructure and leading veteran health and benefit service innovations.  Major focus areas include modernizing VistA and moving it to open source; modernizing electronic health records (“EHR”) and integrating EHR with DoD; allowing veterans to have access to their EHR through Blue Button; protecting veterans’ personal information through cybersecurity; and developing clinical applications for mobile devices.  Ray Group is strategically positioned on many high-visibility, priority VA programs addressing the initiatives above, including Blue Button and EHR Open Source.

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

  • Continued buyer emphasis on strong funding environments and mission-oriented customers, including health IT, big data, and cyber and intelligence
  • Companies possessing focus and depth, customer or capability,  that address a buyer’s strategic gaps are garnering premium transaction results
  • Robust M&A appetite for sellers offering high-end, differentiated capabilities and solutions to their customers
  • Buyers stress the importance of sustainable growth potential evidenced by mission critical programs, stable funding streams, relevant past performance, and actionable new business pipelines

KippsDeSanto & Co. is an investment bank focused on delivering exceptional M&A and financing transaction results for leading technology and defense companies. For more information on KippsDeSanto & Co., please visit www.kippsdesanto.com.

We welcome the opportunity to discuss how KippsDeSanto & Co. can help you achieve your strategic objectives. For more information on this particular transaction, please contact one of the deal team leaders below.

KippsDeSanto & Co., member FINRA / SIPC, is not affiliated with other companies mentioned herein.

PRESS RELEASE

PwC Completes Acquisition of Ray Group International

Deal strengthens PwC’s technology consulting and implementation services for public sector clients

NEW YORK, November 12, 2012 – PwC US today announced that it has acquired Ray Group International, LLC (RGI), a consulting firm specializing in information technology (IT) and program management consulting services for federal government entities. The addition of RGI builds upon PwC’s strengths in technology consulting and implementation for public sector clients, particularly in the areas of IT strategy, enterprise architecture, and program management.

RGI’s consultants have joined PwC’s existing team of professionals that serve the public sector.  Former RGI CEO, Ronald E. Ray, former RGI President, Michael Louden, and former RGI COO, Michael Hecker, have joined PwC in key leadership positions.

“We are very pleased to welcome Ray Group’s highly skilled team of professionals to PwC’s Public Sector practice,” said Scott McIntyre, PwC’s U.S. Public Sector Practice Leader.  “The core skill set of the RGI team strongly complements PwC’s existing services in healthcare IT, program management and communications consulting.  Their client-centric approach mirrors our own, and we know they will bring tremendous additional value to our clients.  PwC’s Public Sector practice helps solve critical issues that matter most to our federal government clients and this capability enhances our ability to add value to these complex challenges.”

The acquisition reflects PwC’s commitment to building depth in areas that meet the needs of its clients, addressing their most complex business challenges, from strategy to execution.

“We are excited to join forces with PwC, a trusted advisor to the federal government,” said Ronald E. Ray, former CEO of Ray Group International.  “This is a tremendous opportunity for the RGI team and for our clients.  At RGI, collaboration has always been a cornerstone to our success, and we look forward to teaming with our new colleagues to bring creative solutions to our clients.”

The acquisition was completed on November 6, 2012.  Financial terms of the transaction will not be disclosed.

To learn more about PwC’s Public Sector practice, visit www.pwc.com/publicsector.

About PwC’s Advisory Practice

PwC’s Advisory professionals help organizations improve business performance, respond quickly and effectively to crisis, and extract value from transactions. We understand our clients’ industries and unique business challenges, and look across the entire organization – focusing on strategy, structure, people, process and technology – to help clients build their next competitive advantage.  See http://www.pwc.com/us/consulting for more information or follow us @PwCAdvisory.

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PwC firms help organizations and individuals create the value they’re looking for. We’re a network of firms in 158 countries with more than 180,000 people who are committed to delivering quality in assurance, tax and advisory services. Tell us what matters to you and find out more by visiting us at www.pwc.com.