KippsDeSanto & Co. advises FreeFlight Systems on its sale to ACR Group, a portfolio company of The Jordan Company

KippsDeSanto & Co. advises FreeFlight Systems on its sale to ACR Group, a portfolio company of The Jordan Company

KippsDeSanto & Co. is pleased to announce the sale of its client, FreeFlight Systems (“FreeFlight” or the “Company”), to ACR Group (“ACR”), a portfolio company of The Jordan Company.

Headquartered in Irving, TX, FreeFlight is a leading provider of next generation avionics systems to global commercial and military aerospace customers.

Established in 2001, FreeFlight is at the forefront of the ongoing airspace transformation, providing a full suite of positioning, data collection, state-sensing, flight management, and air traffic management solutions and services.  FreeFlight’s customer base spans commercial airline, business aviation, and military / government users worldwide.

ACR’s portfolio of brands is known for high quality and performance and adding FreeFlight’s well-known and respected brand will help the companies realize substantial benefits from their respective technology team collaboration and customer / market access.

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

  • Buyers are looking for proprietary, highly engineered, differentiated solutions
  • Cutting-edge IP and continued emphasis on R&D are critical for new systems development to exploit value in the midst of a holistic, global overhaul of legacy systems
  • Private equity continues to be an avid investor in the broader aerospace industry, looking to the middle market to implement buy and build strategies

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

FreeFlight Systems joins the ACR Group

February 24, 2020 – IRVING, Texas – NextGen avionics leader FreeFlight Systems announced today that the Company has joined the ACR Group’s portfolio of aviation companies which includes ARTEX, Flight Data Systems, Latitude Technologies, and SKYTRAC Systems.

“We’ve always made it our mission to make flying safer and more efficient with the highest-quality, longest-lasting, and most affordable products available,” said Tim Taylor, FreeFlight Systems’ President and CEO. “Both companies share common values and goals, with focuses on safety, product performance, and client satisfaction, and together we will continue to lead the industry in the development of critical technologies that supports the aviation industry.”

Headquartered in Irving, Texas, FreeFlight Systems is a leader in providing high-performance, safety of life technologies and solutions that bring the NextGen airspace transformation to all segments of aerospace. The Company will continue to operate as an independent subsidiary, retaining the existing leadership, products, brand, locations, engineering capabilities, and sales team.

Together the aviation division of the ACR Group provides every segment of the aviation market with high value solutions including Emergency Locator Transmitters (ELTs), Flight Data Recorders, Global Aeronautical Distress and Safety Systems (GADSS), Automatic Dependent Surveillance Broadcast (ADS-B), Flight Management Systems (FMS), Monitoring, and Data Acquisition including Flight Tracking and Messaging.

Financial terms of the acquisition will not be released.

For more information on the FreeFlight Systems suite of avionics solutions, visit our product page. For more information on The ACR Group and other safety equipment, visit ACRARTEX.com.

About FreeFlight Systems

FreeFlight Systems designs and manufactures high-performance avionics for flight safety. These solutions deliver substantial safety, cost, environmental, and other benefits from the NextGen airspace transformation. Founded in 2001 and based in Texas, the company pioneered the first certified aviation WAAS/GPS receiver and the first rule-compliant UAT ADS-B system. FreeFlight Systems produces a range of high quality, American-made, competitively priced systems for installation in all aircraft types.

About the ACR Group

The ACR Group is the leading innovator of satellite-based tracking, data communications, and emergency location products & services used across aviation, marine, and land environments. The ACR Group portfolio of companies includes ACR Electronics, ARTEX, Skytrac, Latitude Technologies, Flight Data Systems, NAL Research, Ocean Signal and United Moulders (UML).

KippsDeSanto & Co. Advises IntelliWare Systems, Inc. on its sale to Trowbridge & Trowbridge

KippsDeSanto & Co. Advises IntelliWare Systems, Inc. on its sale to Trowbridge & Trowbridge

KippsDeSanto & Co. is pleased to announce the sale of its client, IntelliWare Systems, Inc. (“IntelliWare” or the “Company”), to Trowbridge & Trowbridge.

Headquartered in Spotsylvania, VA, IntelliWare is a leading provider of NextGen intelligence, cyber, professional, and information technology solutions to the Federal Bureau of Investigation (“FBI”), U.S. Marshals Service, Department of Homeland Security, and Department of State.  IntelliWare applies its intelligence collection / analysis, cybersecurity, mission operations support, and data management / exploitation expertise to address complex law enforcement and national security mission challenges.  The Company’s deep operational and technical expertise and strong domain knowledge have driven consistent and considerable growth.  The combination will afford IntelliWare additional scale and capital as part of Trowbridge to accelerate its strategy with current customers and beyond.

We believe this investment demonstrates several key trends in the government technology environment:

  • Private equity, in this case Enlightenment Capital, building capability and customer-rich growth platforms in the middle market
  • Strong buyer interest for growing companies with domain expertise in highly-sought-after law enforcement and national security markets
  • Innovative solutions and prime, F&O contract wins driving both growth and value creation for mid-sized companies attracting substantial buyer demand

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

Trowbridge Acquires IntelliWare Systems

MCLEAN, Va. – February 4, 2020 – Trowbridge & Trowbridge, a provider of innovative technical solutions to complex Federal information technology challenges in the defense and civilian markets, today announced the acquisition of IntelliWare Systems. The addition of IntelliWare will enhance Trowbridge’s portfolio of solutions, add new and strategic national security customers, and create opportunities for employees within the combined company. Trowbridge is backed by Enlightenment Capital.

IntelliWare provides cyber, intelligence, and information technology solutions to the Federal Bureau of Investigation, U.S. Marshals Service, Department of Homeland Security, and Department of State. The company operates at the intersection of intelligence, law enforcement, and homeland security, and has a proven history of integrating domain expertise and intelligence analysis with mission requirements, technology, and security to produce lasting and innovative solutions for customers.

Cass Panciocco, Trowbridge President and CEO, said, “IntelliWare adds complementary capabilities, a highly-skilled team of employees, and a new customer base that will help us further enable Federal agencies to integrate emerging technologies with complex systems, and conduct data and intelligence analysis for better informed, more efficient decision making. We are excited to welcome the entire IntelliWare team to the Trowbridge family.”

“IntelliWare holds franchise positions providing high-end solutions to Federal law enforcement and homeland security agencies,” added Trowbridge Chief Growth Officer Matthew Candy. “These customers have critical mission needs and correspondingly growing budgets. We have identified several key opportunities to better serve our customers that neither business could pursue independently. Together with Trowbridge’s strategic positions within defense customers, the combined business has the size, scale, and reach-back to further expand organically through additional solutions and contracting options.”

“The deep technical and operational capabilities of IntelliWare and Trowbridge, as well as our shared commitment to employees and customers’ missions, make this an ideal match,” said Dominic LaPore, CEO and Founder of IntelliWare. “Our cultures are dedicated to excellence in delivering high-quality solutions, and we are proud to bring our collective capabilities to market with Trowbridge to enable critical Federal government national security missions.”

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

About Trowbridge
Trowbridge is an award-winning provider of cloud, cyber, and next-gen digital solutions to defense, intelligence, and Federal civilian markets. Headquartered in McLean, Virginia, with locations and staff nationwide, Trowbridge helps move critical missions forward to support the American people and our national security. Trowbridge is a portfolio company of Enlightenment Capital. To learn more or join the team, visit www.tt-llc.com.

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.

KippsDeSanto & Co. Advises Smartronix, Inc. on its Recapitalization by OceanSound Partners

KippsDeSanto & Co. Advises Smartronix, Inc. on its Recapitalization by OceanSound Partners

KippsDeSanto & Co. is pleased to announce the recapitalization of Smartronix, Inc.  (“Smartronix” or the “Company”), by OceanSound Partners (“OceanSound”).

Founded in 1995, Smartronix is a premier provider of mission critical Command, Control, Communications, Computer, Intelligence, Surveillance, and Reconnaissance (“C4ISR”) and next generation IT and complex enterprise network operations  programs for the Department of Defense (“DoD”), as well as leading end-to-end cloud solutions for public sector and commercial customers.

Smartronix has established itself as a C4ISR lead industry integrator on several contracts that span across multiple programs, platforms, and agencies. The Company’s ability to deliver on large, complex programs has yielded over $2 billion in contract awards performing C4ISR integration globally for a myriad of DoD customers.

With over a decade of experience providing cloud professional and managed services, Smartronix’ cloud business is strategically positioned to serve customers within highly regulated industries including federal civilian, defense, healthcare, financial services, state and local government, and education, among other sectors. The Company has been recognized as a Leader by Gartner in their Magic Quadrant for Public Cloud Professional and Managed Services Providers, as well as being accredited as a managed services provider and Premier Partner by all three large cloud services providers; Amazon, Microsoft and Google, a distinction that is highly sought after and rare across the ecosystem of service providers in cloud.

We believe this investment demonstrates several key trends in the defense, and government and commercial technology M&A environment:

  • Highlights the demand for scarce assets with a Full and Open, large scale, mission critical contract profile backed by a suite of complementary Full and Open vehicles, such as Alliant II, OASIS and RS3;
  • Industry leading domain expertise, particularly in high priority, well-funded markets such as C4ISR, is a critical differentiator for sellers in a crowded M&A market;
  • Buyers recognize the rarity and value of companies that have next generation IT and cloud capabilities, particularly those supporting all three leading cloud service providers (AWS, Microsoft and Google); and
  • Private equity continues to deploy capital in the government and commercial technology market – via new platforms and add-ons to existing portfolio companies to build differentiated middle market players

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

OceanSound Partners Announces Strategic Investments to Create Leading Government Technology Business

NEW YORK–(BUSINESS WIRE)–OceanSound Partners, LP (“OceanSound”), a private equity firm focused on making control investments in middle-market technology and technology-enabled companies, today announced the recapitalizations of Smartronix, Inc. (“Smartronix”) and Trident Technologies, LLC (“Trident”). Financial terms of the private transaction were not disclosed.

Smartronix, based in Hollywood, MD, is a leading provider of next-generation information technology and cloud solutions to government and commercial customers, and intelligence, surveillance, and reconnaissance solutions to the U.S. Department of Defense. The recapitalization of Smartronix was completed in December 2019. Trident, based in Huntsville, AL, is a leading provider of advanced IT, engineering, and programmatic solutions to the United States federal government. The company was acquired by OceanSound in March 2019.

“The Smartronix team is thrilled to partner with OceanSound given their deep experience in our core markets and a shared vision on how we can continue to grow our company,” said John Parris, CEO of Smartronix. “This partnership will allow us to further build our brand, broaden our portfolio of capabilities and expand into new customer segments by investing in the business, both organically and with strategic acquisitions.”

“The Smartronix and Trident transactions are exciting and meaningful milestones for OceanSound that validate our investment strategy, our team’s capabilities and the strong support we have received from investors, especially considering the collective magnitude of the transactions in our first year,” stated Joe Benavides, Co-Founder and Partner at OceanSound. “We have assembled an exceptional team with significant prior experience investing together within our focus markets. We are united in the conviction that we can apply our collective expertise and experience to identify, acquire, and drive value creation within attractive middle-market companies operating in both government and commercial markets.”

In addition to Benavides, the firm is led by experienced investment partners Jeff Kelly and Ted Coons, and supported by a team of 10 Executive Partners, investment professionals, and administrative staff. Benavides most recently served as a Partner at Veritas Capital where he worked with Kelly, and was previously at The Blackstone Group, where he worked with Coons. Prior to OceanSound, Kelly was most recently at H.I.G. Capital while Coons was most recently a General Partner at TCV.

“Given our long history of working together, launching OceanSound has been a seamless transition,” said Coons, Co-Founder and Partner at OceanSound. “These initial transactions fit squarely within our investment strategy and leverage our differentiated perspective of companies operating at the intersection of government and technology. Smartronix and Trident provide mission-critical digital transformation and cloud computing solutions, particularly to government customers, and their collective expertise in multi-cloud, data analytics, and cybersecurity ideally positions the businesses to compete and win in the growing markets for mission-critical IT, cloud, and defense services and solutions.”

“We are excited to embark on the next phase of Trident’s growth in partnership with OceanSound. Their strategic guidance and experience in our industry will be invaluable to us as we expand our business to provide new solutions to customers and pursue growth opportunities that were unavailable to us as a founder-owned business,” said Mike Williams, CEO of Trident.

“We are thrilled to have the opportunity to partner with Smartronix and Trident. Each have distinguished employee bases and impressive track records delivering mission critical services and solutions to their customers. Both companies will gain access to additional resources, a diverse portfolio of capabilities and contract vehicles, as well as enhanced geographic reach to better serve the needs of customers,” said Kelly, Co-Founder and Partner at OceanSound. “We look forward to supporting their continued growth with additional investments in corporate infrastructure, including human capital and technology, and strategic acquisitions.”

KippsDeSanto & Co. served as the exclusive financial advisor to Smartronix. Arena Strategic Advisors provided due diligence and strategy support to Trident and OceanSound. Pillsbury Winthrop Shaw Pittman LLP served as legal counsel to Smartronix, and Gibson, Dunn & Crutcher LLP and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to OceanSound.

About OceanSound Partners

OceanSound Partners is a middle-market private equity firm that invests in U.S. based technology and technology-enabled services companies operating in business-to-government and business-to-business end markets. OceanSound targets investments with defensible and resilient business models, attractive secular market growth, and multiple opportunities for value creation. We seek to execute a value-oriented approach, investing in businesses which are complex or facing an inflection point. OceanSound specializes in enacting strategic and operational initiatives to reposition businesses and drive transformational growth in partnership with management teams. We invest in companies that are driving digital transformation, primarily in the government, industrial, enterprise, and communications technology sectors, which include hardware, services and software businesses. For more information, please visit www.oceansoundpartners.com.

About Smartronix, Inc.

Smartronix is a leading provider of next generation IT, cloud and ISR solutions to the Department of Defense, federal civilian and commercial customers. The company’s core capabilities include cloud professional, managed, and resale services; ISR solutions; mission systems integration; enterprise network operations; cybersecurity; and; systems integration services. Smartronix serves a wide range of customers across federal and state government and commercial markets. For more information, please visit https://www.smartronix.com/.

About Trident Technologies, LLC

Trident Technologies, LLC is a leading provider of advanced engineering, information technology and programmatic and technical services to a wide variety of customers within the United States Department of Defense. The company’s capabilities include advanced engineering; enterprise architecture; data integration, collection and management; development, integration and deployment; cloud migration; cybersecurity, and; data analytics. Trident serves a diverse group of customers across the Department of Defense, with a primary focus on the U.S. Army, U.S. Transportation Command, and the Missile Defense Agency. For more information, please visit www.tridenttechnologies.net.Contacts

Contacts

Media
Charlyn Lusk, Stanton
clusk@stantonprm.com
646-502-3549

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

KippsDeSanto & Co., an investment banking firm focused on serving growth-oriented Aerospace / Defense, Government Services and Technology companies, would like to share its thoughts on the “Top 10 M&A Deals of the Quarter” for the period ended December 31, 2019.  The following table is our take on the most notable announced M&A transactions — not only based on size, but also on strategic importance and / or impact.

Of the above transactions, the following were especially noteworthy:

The aerospace and defense deal of the quarter is Spirit Aerosystems Holdings Inc.’s pending acquisition of select assets of Bombardier Aerostructures and its Aftermarket Services Businesses in Morocco, Texas and Northern Ireland. The acquired assets, which produce parts for the Airbus SE A320 and A220 jets, employ more than 4,000 people at three sites, and will help cushion Spirit from the disruption caused by the grounding and slowed production of the 737 MAX; the 737 MAX accounts for an estimated 50% of Spirit’s annual sales. The purchase of these assets is part of Spirit’s strategy to secure additional business at Airbus, expand military and helicopter aircraft work, and strengthen its non-U.S. operations. The wing-making facility in Northern Ireland will provide Spirit with access to the Airbus A220 program, as well as the potential for additional next generation work for single-aisle jets. The estimated $1.09 billion transaction was announced on October 31st; the cash consideration will be $500 milllion; Spirit AeroSystems will assume approximately $300 million in net pension liabilities and approximately $290 million of government grant repayment options.

The government technology solutions deal of the quarter is Leidos’ (NYSE: LDOS) $1.65B acquisition of the employee-owned and privately-held national security solutions provider, Dynetics, Inc (“Dynetics”). Dynetics will operate as a wholly-owned subsidiary of Leidos. The acquisition is expected to add $110M of EBITDA to Leidos in 2020. Dynetics is a leading provider of high-tech, mission-critical services and solutions to the U.S. government. Leidos is a market leader in providing information technology, engineering, and science solutions to defense, civilian, and healthcare federal agencies. The acquisition of Dynetics will strengthen Leidos’ position in existing markets, while accelerating research within the Leidos Innovations Center to develop new technologies and solutions that address evolving customer requirements. Leidos CEO Roger Krone highlighted the innovative nature of Dynetics’ work, stating that “the addition of Dynetics will significantly increase our capabilities for rapid prototyping and agile system integration and production.” The acquisition is the third and largest for Leidos in the past 18 months (the company purchased IMX Medical Management in August 2019 and Aranea Solutions in June 2018), evidencing the Company’s commitment to its M&A strategy. This deal reflects the broader trend of public buyers seeking acquisitions that add scale and provide differentiated solutions, such as advanced engineering and prototyping, intellectual property, and embedded customer positioning within the Department of Defense and Intelligence Community.

Click to access KippsDeSanto’s 2019 Aerospace/Defense & Government Services M&A Survey

About 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.

KippsDeSanto & Co. advises The AEgis Technologies Group, Inc. (“AEgis”) on its sale to Arlington Capital Partners

KippsDeSanto & Co. advises The AEgis Technologies Group, Inc. (“AEgis”) on its sale to Arlington Capital Partners

KippsDeSanto & Co. is pleased to announce the sale of its client, The AEgis Technologies Group, Inc. (“AEgis” or the “Company”), to Arlington Capital Partners.

Headquartered in Huntsville, AL, AEgis is a leading provider of advanced engineering and technology solutions to Department of Defense (“DoD”) and National Security customers.  AEgis’ solutions span a variety of applications to include space communications, complex weapons systems, Command, Control, Communications, Computers, Intelligence, and Reconnaissance (“C4ISR”), modeling and simulation, and directed energy.  In order to address next generation warfighter readiness requirements, the Company has also developed a proprietary suite of augmented and virtual reality and simulation training solutions.  AEgis has a long-standing history supporting a diverse base of high-profile and well-funded government customers, including the U.S. Army, Missile Defense Agency (“MDA”), and the U.S. Air Force.

We believe this investment demonstrates several key trends in the government technology environment:

  • Strong demand for advanced, technology-driven engineering solutions backed by Company-owned intellectual property
  • Interest in Companies with deep and tenured past performance across a diversified base of sought after and well-funded DoD and national security customers
  • Buyer focus on strategic alignment with high-priority and forward-looking mission areas such as space, C4ISR and directed energy.
  • Financial sponsors continue to deploy capital in the government services market through new platform investments and bolt-on acquisitions to existing portfolio companies, particularly for those assets with long-term contracts and strong management 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 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.

Press Release

Arlington Capital Partners Announces Investment in AEgis Technologies

WASHINGTON — Arlington Capital Partners, a Washington, DC-based private equity firm, announced that it has agreed to make a majority investment in AEgis Technologies. Headquartered in Huntsville, Alabama, AEgis provides advanced engineering and technology expertise to customers in the National Security community. Jonathan Moneymaker, a veteran government contracting executive with over 20 years of national security and technology experience, will join the Company as Chief Executive Officer and serve on the Board of Directors.

David Wodlinger, a Partner at Arlington, said, “AEgis has established itself as a preeminent provider of differentiated solutions that address critical national security objectives in the domains of space superiority, directed energy, and missile defense. We are partnering with AEgis to increase investment in these core areas to deliver impactful innovations to our customers that are working on these evolving, high priority missions.”

“Throughout AEgis’ nearly 30-year history, our employees have strived to develop innovative technical solutions for the military so that our warfighters can come home safely,” said Steve Hill, Co-Founder of AEgis. “We have found a partner in Arlington that will remain committed to this mission as the Company enters its next phase of growth.”

Hill will remain a substantial shareholder in AEgis and will continue to provide strategic guidance to the Company as a member of the Board of Directors.

“I’m thrilled to join the AEgis family and partner with Arlington on building their newest platform. AEgis’ growth has been remarkable and is a testament to the deep mission intimacy and differentiated solutions the Company delivers to its national security customers,” Moneymaker said. “I look forward to working with our talented management team and dedicated employees as we continue to drive growth and execute the vision of becoming a first-class provider of national security technology across our customers’ most critical and fastest growing domains of warfare.”

Moneymaker was most recently President of Altamira Technologies, a provider of engineering and analytical solutions to the Defense and Intelligence communities, where he led the company through a period of transformational growth. Prior to that, he was General Manager of the Intelligence Systems Group at Boeing where he was responsible for more than 1,000 employees providing specialized services to the Intelligence and Special Operations communities.

Henry Albers, a Vice President at Arlington, said, “AEgis has built a reputation for technical excellence and commitment to the mission, making the Company an employer of choice for high caliber professionals. We are excited to partner with Jonathan and the AEgis management team to build on that tradition and accelerate the Company’s growth by investing in internal research and development as well as pursuing strategic acquisition opportunities.”

KippsDeSanto & Co. advises BEI Precision Systems & Space Company on its acquisition of Wenzel Associates, Inc.

KippsDeSanto & Co. advises BEI Precision Systems & Space Company on its acquisition of Wenzel Associates, Inc.

KippsDeSanto & Co. is pleased to announce the acquisition of Wenzel Associates, Inc., by our client, BEI Precision Systems & Space Company, Inc. (“BEI Precision”), a portfolio company of J.F. Lehman & Company (“JFLCO”).

Headquartered in Austin, Texas, Wenzel is at the forefront in the design and manufacture of crystal oscillators, fixed frequency systems, integrated microwave assemblies, and synthesizers for military, space, and commercial applications.  This marks the second acquisition BEI Precision has made since it was acquired by JFLCO in April 2017, and further solidifies BEI Precision’s robust portfolio of high-end positioning sensor solutions.

Similar to BEI Precision, Wenzel products are differentiated via their ability to provide the highest performance (e.g., lowest phase noise) reliably in extreme environments. Wenzel’s oscillators are key components on numerous military and space platforms, typically on a sole source basis. Notable examples of Wenzel’s past work include providing space-flight hardware for the Lunar Reconnaissance Orbiter for NASA, as well as oscillators for the Mars Pathfinder Lander and the National Polar-orbiting Operational Environmental Satellite System (“NPOESS”).  Currently, Wenzel is engaged to supply oscillators for numerous radar and electronic warfare systems found on high-profile aviation, land and naval platforms. BEI Precision intends to leverage Wenzel’s position on these noteworthy programs to further penetrate existing and tangential customer opportunities.  The acquisition of Wenzel further deepens BEI Precision’s existing base of high-end engineering talent, along with offering additional manufacturing and testing capabilities in Austin.

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.

Press Release

BEI Precision Announces Acquisition of Wenzel Associates, Inc.

October 23, 2019

NEW YORK – BEI Precision Systems & Space Company, Inc. (“BEI Precision”), a portfolio company of investment affiliates of J.F. Lehman & Company (“JFLCO”), announced today the recent acquisition of Wenzel Associates, Inc. (“Wenzel”).

Headquartered in Austin, Texas, Wenzel is a leading designer and manufacturer of crystal oscillators, fixed frequency systems, integrated microwave assemblies and synthesizers for military, space and commercial markets. Since 1978, Wenzel has defined the state-of-the-art in ultra-low phase noise crystal oscillators, manufacturing products that are capable of highly reliable and precise performance in extreme environments. Wenzel is supported by its Croven Crystals division in Whitby, Ontario, which supplies precision quartz resonators with extremely low noise and low sensitivity to vibration. Wenzel is the second add-on acquisition completed by BEI Precision under JFLCO’s sponsorship.

BEI Precision is a leader in high-accuracy positioning sensor technologies, providing advanced design, manufacturing and testing for reliable and resilient products and systems. BEI Precision’s core product lines, which are used primarily in mission-critical defense and space applications, include optical encoder-based and resolver-based positioning systems, scanners for situational awareness requirements and precision accelerometers. BEI Precision is headquartered in Maumelle, Arkansas with an operating subsidiary in Edinburgh, Scotland, and has a longstanding track record of technological innovation, with corporate roots dating back to 1862.

Mark Mirelez, Chief Executive Officer of BEI Precision, commented, “Our partnership with Wenzel will further strengthen both organizations’ abilities to meet the unique and evolving requirements of our customers, particularly in the space and military markets.”

“The Wenzel acquisition further enhances BEI Precision’s reputation as a provider of the highest-performance advanced sensing and positioning solutions for critical applications,” said Steve Brooks, Partner at JFLCO. “We are excited to welcome Wenzel and its strong engineering-focused culture to the BEI Precision platform,” added Will Hanenberg, Principal at JFLCO.

KippsDeSanto & Co. served as financial advisor to BEI Precision and JFLCO, and Jones Day (lead counsel) and Baker Hostetler (international trade, government contracts and defense security compliance matters) provided legal counsel. Sperry, Mitchell & Company served as financial advisor to Wenzel while McGinnis Lockridge were Wenzel’s legal representatives for the transaction.

KippsDeSanto & Co. Advises Kforce, Inc. on its sale of TraumaFX Solutions to Tactical Medical Solutions, a portfolio company of Guardian Capital Partners

KippsDeSanto & Co. Advises Kforce, Inc. on its sale of TraumaFX Solutions to Tactical Medical Solutions, a portfolio company of Guardian Capital Partners

KippsDeSanto & Co. is pleased to announce the sale of its client, TraumaFX Solutions (“TFX” or the “Company”), a subsidiary of Kforce Inc., (NASDAQ: KFRC), to Tactical Medical Solutions, a portfolio company of Guardian Capital Partners (“GCP”).

TFX is a leading developer, designer, and manufacturer of proprietary medical simulators that improve human and K9 survivability following trauma related incidents.  The Company has a leading position within its core markets and is well known for delivering high-fidelity simulators that deliver the most lifelike training experiences on the market.  TFX has established deep and recurring relationships within the well-funded Department of Defense (“DoD”), given its 10-year history supplying mission-critical products.

With the acquisition, TacMed, a provider of hemorrhage control and related safety products, expands its product portfolio, enabling the combined entity to cross-sell its complementary product offerings.  Additionally, the acquisition will expand TacMed’s customer base and accelerate the Company’s expansion into adjacent markets.

We believe this transaction demonstrates key trends in the training and simulation M&A environment:

  • Specialized and differentiated product offerings drive value in the market place
  • Company-owned IP provides important barriers to entry and promotes customer “stickiness”
  • Buyers remain interested in companies with strong margin profiles and recurring revenue
  • Both buyers and sellers continue to gain value from corporate divestitures

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.

Press Release

Tactical Medical Solutions Announces the Acquisition of Leading Medical Simulator Manufacturer, TraumaFX

ANDERSON, S.C.–Tactical Medical Solutions, a leading innovator and manufacturer of proprietary pre-hospital medical components and technology for tactical and civilian applications, and Guardian Capital Partners, announce the acquisition of TraumaFX Solutions.

TraumaFX is the global market leader in innovative medical simulation and training technologies that improve survivability of severe injuries on the battlefield and in civilian casualty situations. TraumaFX specializes in high-fidelity, rugged simulators that deliver the most lifelike experience for trainees while enabling field exercise in any environment and weather condition.

TraumaFX’s innovative platform, with its advanced sensor technology, monitors critical treatment procedures and wirelessly transmits data to trainers so instruction can be optimized in real-time. After-action reporting provides objective feedback to leaders and staff confirming competencies, capabilities, and readiness.

“With a growing need to deliver trauma response capabilities in many environments, the addition of TraumaFX provides our customers a continuum of capabilities, from training support to market leading products, that will enhance their ability to respond when required,” said Ross Johnson, TacMed CEO. “Tactical Medical Solutions’ mission is to lead in trauma response and minimize preventable death. That starts with training and ensuring responders have access to life-saving medical technology. We are pleased to add TraumaFX to our portfolio as nothing on the market creates a more realistic and effective training environment than the TFX product line. We know it will support our clients’ efforts to deliver on their critical mission.”

KippsDeSanto & Co. advises DELTA Resources, Inc. on its sale to VT Group, a portfolio company of The Jordan Company

KippsDeSanto & Co. advises DELTA Resources, Inc. on its sale to VT Group, a portfolio company of The Jordan Company

KippsDeSanto & Co. is pleased to announce the sale of DELTA Resources, Inc.  (“DELTA” or the “Company”), to VT Group, a portfolio company of The Jordan Company.

Founded in 2000, DELTA is a next-generation U.S. Navy modernization solutions provider based in Alexandria, VA specializing in full lifecycle naval systems engineering and technical services for critical Naval Sea Systems Command (“NAVSEA”), Navy Program Executive Offices (“PEO”), Army, and DISA programs.

The Company’s deep domain knowledge and past performance in modernization and interoperability, to include Command, Control, Communications, Computers, Cyber and Intelligence (“C5I”), weapon systems engineering, shipbuilding and fleet modernization, IT modernization, cloud implementation, and cybersecurity has established DELTA as trusted partner to address customers’ most challenging mission requirements to advance the capabilities and technological superiority of the Navy’s Fleet and other key DoD programs, platforms, and warfare systems.

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

  • Acquirers continue to attribute strong value to companies with entrenched customer positioning and longstanding incumbency on mission-critical programs;
  • Deep domain and subject matter expertise, particularly in attractive C5I and IT modernization proficiencies, are critical differentiators for sellers in a crowded M&A market; and
  • Private equity continues to deploy capital in the government services market – via new platforms and add-ons to existing portfolio companies to further build the middle market; and

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.

Press Release

VT Group Enhances Naval Modernization Capabilities with Acquisition of DELTA Resources, Inc.

CHANTILLY, VA – (October 1, 2019) — VT Group, a premier technology integrator and C4ISR solutions provider, is pleased to announce the acquisition of DELTA Resources, Inc., a rapidly growing firm of 350 highly skilled professionals specializing in naval systems engineering and technical services for the US Navy’s most critical shipbuilding and Fleet modernization programs.

Founded in 2000 and headquartered in Alexandria, Virginia, DELTA Resources provides the Naval Sea Systems Command (NAVSEA) and the Navy’s Program Executive Offices (PEOs) with C5I and weapons systems engineering, integrated product support, and a full spectrum of technical services. DELTA Resources also delivers information technology, cloud implementation, and cybersecurity engineering services to a growing customer base that includes the US Army and the Defense Information Systems Agency (DISA).

“I am excited to welcome the DELTA Resources team to VT Group,” said John Hassoun, VT Group President and Chief Executive Officer. “This acquisition adds differentiated technical expertise to our portfolio of Fleet modernization capabilities and positions VT Group as a leading provider of full lifecycle naval engineering services for the next generation of naval platforms and weapons systems.”

DELTA Resources founder and Chief Executive Officer Maria Proestou shared, “I am immensely proud of the DELTA Resources team, their commitment to our customers, and the business we’ve built together. This combination is the next chapter in our story. VT Group and DELTA Resources share a common vision, compatible cultures, complementary capabilities, and a customer-focused team of talented professionals.” Ms. Proestou will continue to lead DELTA Resources as a wholly-owned subsidiary of VT Group.

VT Group provides Defense Department customers with industry leading C4ISR modernization and sustainment solutions and full lifecycle engineering in the air, ashore, and at sea. Its US Navy prime contract customers include the Naval Air Systems Command (NAVAIR), Naval Information Warfare Systems Command (NAVWAR), and Naval Sea Systems Command (NAVSEA) and its capabilities span the engineering lifecycle spectrum, from concept development and design through installation, integration, and sustainment. Chief Growth Officer Sunil Ramchand added, “In the Program Executive Offices, at the Systems Commands, and on the deckplates of every class of warship and submarine in the Fleet, VT Group is honored to support the US Navy and proud to provide our Sailors with the warfighting capabilities of tomorrow.”

About VT Group

Headquartered in Chantilly, VA, VT Group is a leading technology integrator with nearly 50 years of experience delivering C4ISR solutions to complex challenges faced by our government and commercial customers in the Defense and National Security markets. An end-to-end provider of integrated information systems and technology engineering solutions, VT Group operations span more than 80 locations worldwide. For more information on VT Group, visit www.vt-group.com.