KippsDeSanto’s DealView – Top 10 M&A Deals of the Quarter
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 June 30, 2021.
Of the above transactions, the following were especially noteworthy:
The A&D deal of the quarter is KKR & Co. L.P.’s (“KKR”) pending $4.5 billion acquisition of Atlantic Aviation FBO Holdings, LLC (“Atlantic Aviation” or the “Company”), a subsidiary of Macquarie Infrastructure Corporation (“MIC”). MIC anticipates $3.3 billion of the purchase price to be available for distribution post-closing following payments related to MIC’s reorganization into Macquarie Infrastructure Holdings, LLC (“MIH”), which was approved by MIC shareholders on May 6, 2021. Headquartered in Plano, TX, Atlantic Aviation operates one of the largest networks of fixed base operations (“FBOs”) in the U.S., providing a full suite of critical services, such as fuel and hangarage to owners and operators of private-jet aircraft. The Company operates at 69 airport locations in some of the most popular business and recreational destinations around the U.S. The investment from KKR positions Atlantic Aviation for continued growth as a standalone company led by its existing management team. The transaction comes on the heels of Blackstone Group’s, Cascade Investment’s, and Global Infrastructure Partners’ (“GIP”) $4.7 billion acquisition of Signature Aviation, the world’s largest FBO chain, and further represents the renewed interest in the commercial aerospace market displayed by private equity firms as the global economy continues its recovery from the COVID-19 pandemic. The transaction is expected to close in the fourth quarter of 2021, subject to customary regulatory approvals and approval from MIC shareholders.
The GTS deal of the quarter is the pending acquisition of Novetta Solutions, LLC (“Novetta”), a portfolio company of The Carlyle Group, by Accenture Federal Services (“AFS”), a wholly owned subsidiary of Accenture (NYSE: ACN). Based in McLean, VA, Novetta provides analytic software solutions that detect potential threats, and protect high-value networks for government and commercial enterprises worldwide. The acquisition of Novetta complements AFS’ presence in the national security sector and bolsters its next-generation capability set in software development, data science, artificial intelligence, machine learning, cyber, and cloud. The combined organization will strive to improve the digital landscape of the federal government through a true DevSecOps approach. Terms of the transaction have not been publicly disclosed. Under The Carlyle Group’s 100% ownership, Novetta acquired Berico Technologies, LLC in November 2018 and most recently WaveStrike, LLC in June of 2020, both of which helped the platform scale and expand its capability set. This acquisition demonstrates a continued interest by public companies to acquire targets providing cutting edge technology solutions to high-profile Intelligence Community and Department of Defense customers. This transaction is one of several high-profile deals consummated in the quarter highlighting the robust current M&A environment with total GTS deal volume approaching 100 through year-to-date 2021.
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.
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.
