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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

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 March 31, 2022.

Of the above transactions, the following were especially noteworthy:

The A&D deal of the quarter is SES S.A.’s (Paris: SESG.PA) pending acquisition of Leonardo DRS Global Enterprise Solutions Group (“DRS GES”). DRS GES provides satellite services, network and telecommunications, electronic and cyber security solutions, and aviation maintenance services to private sector and U.S. federal government defense and intelligence markets. SES operates a fleet of more than 70 geosynchronous and medium Earth orbit satellites. SES plans to combine DRS GES with SES Government Solutions (“SES GS”), taking advantage of their shared cultures and deep commitment to providing secure, global solutions to unite the state-of-the-art multi-orbit satellite networking capabilities of SES GS with DRS GES’s experience in satellite communications integration. US Government customers will also benefit from technical and commercial simplification, while ensuring continuity of high-performance satellite-enabled solutions. The transaction values the Global Enterprise Solutions Group at $450 million. The consolidation of DRS GES with SES GS is expected to add about $40 million of EBITDA and will benefit from the combination of future business expansion and $25 million of annualized run-rate synergies, including opportunities to support and enhance existing networks and services with the SES multi-orbit network. Finalization of the deal is targeted for the second half of 2022 subject to regulatory approvals.

The GTS deal of the quarter is the pending all-stock merger of Vectrus, Inc. (NYSE: VEC) (“Vectrus”) and The Vertex Company (“Vertex”), a portfolio company of private equity group, American Industrial Partners. Headquartered in Colorado Springs, CO, Vectrus provides systems integration, operations, sustainment, engineering, logistics, and space launch and range support solutions and services to military customers and government agencies around the world. Madison, MS based Vertex provides vertically integrated lifecycle support, offering aviation maintenance, logistics support, systems engineering and integration, onsite mission execution, high consequence training programs, and integrated supply-chain solutions. The combined company will offer an expanded suite of integrated technology solutions and critical services to help support national security and military convergence. Following the merger, the company will take on a new name and remain listed on the New York Stock Exchange with headquarters in Northern Virginia. Under the terms of the merger, Vertex shareholders will own about 62% of the combined company and Vectrus shareholders will own approximately 38% on a fully diluted basis, valuing Vertex at $2.1 billion. The combined company would have 2021 pro forma revenue of approximately $3.4 billion and adjusted EBITDA of approximately $283 million, which includes $20 million of estimated cost synergies. This transaction highlights the growing trend of public GTS companies providing value to shareholders through M&A, in addition to organic growth efforts. Vertex is one of four public GTS companies to announce or close an M&A transaction in the first quarter of 2022, along with Booz Allen Hamilton (NYSE: BAH), CACI Inc (NYSE: CACI), and ManTech International (NASDAQ: MANT). Following the closing of this transaction, Chuck Prow, Vectrus CEO, and Susan Lynch, Vertex CFO, will serve as CEO and CFO of the combined company, respectively. The merger is expected to close in the third quarter of 2022.

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.

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KippsDeSanto & Co. advises Blue Air Training, LLC, on its sale to Top Aces, a portfolio company of Clairvest Group Inc.

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KippsDeSanto & Co. advises Blue Air Training, LLC, on its sale to Top Aces, a portfolio company of Clairvest Group Inc.

KippsDeSanto & Co. is pleased to announce the sale of Blue Air Training, LLC (“Blue Air” or the “Company”), to Top Aces, a portfolio company of Clairvest Group Inc. (“Clairvest”).

Headquartered in Las Vegas, Nevada, Blue Air is one of the preeminent providers of Close Air Support (“CAS”) training for U.S. and foreign military Joint Terminal Attack Controllers (“JTAC”). Blue Air offers a comprehensive, end-to-end suite of training services for JTAC, satisfying its CAS training requirements and ensuring combat readiness. Blue Air’s experienced military CAS instructor pilots provide customized training services designed in collaboration with each customer, including mission planning, logistics support, simulation, platform instruction, live / dry weapons control, day / night control, laser control, multiple asset replication, and mission debrief, among others.

As the pioneer of the CAS training market for JTACs, Blue Air has established an exceptional reputation and enduring relationships with customers such as the U.S. Air Force, the Air National Guard, and Special Operations Terminal Attack Controllers through their high-quality training services. The Company’s fleet of turboprop and jet aircraft and team of highly experienced fighter pilots, special operators, and operations personnel drive realistic and cost-efficient exercises, cultivating in Blue Air’s status as the sought-after industry partner.

Blue Air with Top Aces will be well positioned to capitalize on the fundamental tailwinds of contracted Adversary Air (“ADAIR”) and JTAC training services globally.

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

  • Demand for companies with strong past performance and intimacy with well-funded customers
  • Preeminent leaders within high barrier-to-entry industries are rare and highly sought-after in the market
  • Attractiveness of operational synergies, complementary services, market know-how, and significant opportunities for growth

 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.

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KippsDeSanto & Co. Advises B3 Group, Inc. on its sale to Octo, a Portfolio Company of Arlington Capital Partners

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KippsDeSanto & Co. Advises B3 Group, Inc. on its sale to Octo, a Portfolio Company of Arlington Capital Partners

KippsDeSanto & Co. is pleased to announce the sale of its client, B3 Group, Inc. (“B3” or the “Company”) to Octo, a portfolio Company of Arlington Capital Partners.

Headquartered in Herndon, Virginia, B3 is a leading provider of holistic digital transformation services delivering forward leaning digital thought leadership, deep technical expertise, cutting edge Salesforce and other low-code /  no-code technologies (including Microsoft Power Platform, Pega, and ServiceNow) domain knowledge and a range of next-gen IT capabilities that drive enterprise-wide digital transformation initiatives across the Department of Veterans Affairs (“VA”) to further improve health outcomes and support for veterans and military families.

Leveraging its differentiated capabilities, as well as its franchise position within the VA and as an established Transformation Twenty-One Total Technology Next Generation (“T4NG”) contract holder, B3 has established itself as the go-to digital partner with a significant footprint across the entire VA enterprise, including the Digital Transformation Center (“DTC”), which is a marquee $686M program to enable and deliver agency-wide access to modernized SaaS, PaaS, and emerging digital products, and technology platform management. Combined with over 350 certified subject matter experts and employees, the Company has been critical to its customers achieving next-generation, dynamic capabilities that facilitate information sharing and optimization of metadata and improve overall business performance.

The acquisition adds B3’s deeply embedded VA relationship and past performance to Octo’s broader federal health footprint, and a differentiated suite of digital services and capabilities, including Salesforce, low-code / no-code, data analytics, and cloud engineering.

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

  • Continued trend of investment and emphasis placed on large, growing federal health IT market given favorable budgetary environment
  • Strong demand for access to VA via major contract vehicles and task orders (i.e., T4NG and $686M DTC Task Order) to complement and bolster existing Federal health practices
  • Significant value attributed to targets with highly differentiated digital transformation offerings
  • Private equity and private equity-backed buyers continue to actively invest in the government services market and pursue targets that add immediate scale and customer access, next-gen capabilities, and a talented workforce with deep subject matter expertise

About KippsDeSanto & Co. KippsDeSanto & Co. is an investment banking firm focused on serving growth-oriented Space / 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

Octo Acquires Digital Transformation Leader B3 Group

 The B3 Group acquisition expands Octo’s innovative modernization offerings to all three major federal health markets.

 January 5, 2022, Reston, Va. – Octo, the premier pure-play IT modernization provider for the Federal Government, announced today that it has acquired privately held, Herndon-based B3 Group, Inc. (B3), which provides enterprise-level application modernization leveraging low-code/no-code software and platforms such as Salesforce, Microsoft Power Platform, Pega, and ServiceNow; large-scale data governance, integration and analytics; and cloud engineering and operations to federal healthcare customers.

B3 has 13 years of experience partnering with the U.S. Department of Veterans Affairs (VA) to improve patient experience and health outcomes for veterans. This acquisition expands Octo’s current federal health footprint from the U.S. Department of Health and Human Services (HHS) and the Defense Health Agency (DHA) to include the VA, and bolsters Octo’s position as a major IT modernization services provider to these major federal health customers. The addition of B3’s marquee programs, including the $686 million Digital Transformation Center (DTC) contract, expands the technical modernization expertise Octo provides at scale to its existing federal civilian, homeland security, defense, and intelligence customers.

Both B3 and Octo have a history of driving innovation on behalf of their customers. B3’s Digital Transformation and Modernization (DTM) lab will augment Octo’s recently expanded oLabs™ environment. Housed in a 14,000 square foot facility in Reston, Virginia, oLabs is one of the largest D.C. metro area centers dedicated to Federal Government R&D, containing more than 15 petaflops of AI computer power and two petabytes of FlashBlade storage available to existing customers – and now the VA – to power emerging technology research and product development to improve mission effectiveness.

“We are ecstatic B3 is joining the Octo family,” said Octo CEO, Mehul Sanghani. “Octo’s differentiation lies in its ability to provide pure-play modernization capabilities and proven past performance at a scale and breadth that is unmatched. The addition of B3 further expands that differentiation, adding proven digital transformation capabilities with low-code/no-code technologies, more than 350 highly certified professionals, and over $1 billion of proven task order past performance delivering digital transformation solutions in key markets. These capabilities and proven performance combined with Octo’s highly certified personnel and innovative product suites, will enable current and future federal customers to better serve citizens, active-duty military, and veterans. Now with even deeper experience across the health space added to our defense, intelligence, national security, and civilian customer base, Octo has greatly enhanced its position to serve as the Federal Government’s complete, end-to-end digital modernization partner.”

“Joining Octo allows us to enhance our offerings to our customers through a more robust set of solutions and provide greater career opportunities to our employees,” said B3 CEO, Dwight Hunt. “As B3 and Octo began to collaborate, we collectively realized that our commitment to improving digital services to the VA and the broader federal health community will turbocharge the solutions we deliver to our nation’s veterans and those that support them. Our corporate philosophies and values strongly align, which makes us even more excited to join forces with Octo and create a new vision for the future.”

Octo’s General Manager of Federal Health, Charlie McQuillan, said, “The addition of B3’s low-code/no-code solutions and talented employee base expands Octo’s ability to deliver effective and efficient health solutions. In turn, Octo’s robust technical staff and offerings will enhance services available to B3’s customer base, including the VA. We look forward to working as a unified team, bringing the best of modernization to the Federal Government.”

Michael Lustbader, a Managing Partner of Arlington Capital Partners, said, “B3 adds differentiated capabilities in low-code/no-code software development to the suite of Octo’s solutions. We look forward to serving the U.S. Department of Veterans Affairs, bringing these expanded capabilities to our existing customers, partnering with B3’s management, and investing behind their modernization growth vectors.”

B3’s leadership will remain with the company and expand Octo’s Health business to drive continued growth and customer success.

About Octo

Octo is a technology firm dedicated to solving the Federal Government’s most complex challenges, enabling agencies to jump the technology curve. We don’t just modernize. We create lasting change through best practices that help agencies implement and integrate at-scale next-generation technology and innovation. With a mission and service first mentality, we provide Agile, DevSecOps, Artificial Intelligence, Cybersecurity, Blockchain, Cloud, Open Source, and Data Science solutions, collaborating to solve customers’ pressing problems. Headquartered in Reston, Virginia, Octo delivers proven technology vital to the intelligence community and health care, defense, national security, and civilian agencies that directly impact our nation. Visit octoconsulting.com to learn more. 

 About B3

B3 is an IT transformation firm specializing in digital services and technology solutions that impact the lives of veterans. B3 manages large-scale digital transformation platforms and provides services facilitated through its technology partnerships. Founded in 2008 on the principles of servant leadership, B3 has been recognized annually by Inc. 5000 for its strategic growth and was recently named a 2021 Washington Post Top Workplace. B3 brings its foundational values of innovation, collaboration, and integrity to every interaction with its stakeholders: employees, government, and partners. Visit b3groupinc.com to learn more.

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KippsDeSanto & Co. advises InTec, LLC on its sale to Analytic Services Inc.

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KippsDeSanto & Co. advises InTec, LLC on its sale to Analytic Services Inc.

KippsDeSanto & Co. is pleased to announce the sale of its client, InTec, LLC (“InTec” or the “Company”), to Analytic Services Inc. (“ANSER”).

Headquartered in Fairfax, VA, InTec is a leading provider of technical and management expertise for Intelligence Community (“IC”) and Federal Civilian (“FedCiv”) customer missions.  The Company has successfully grown and leveraged its franchise position at National Geospatial-Intelligence Agency (“NGA”) to expand its reach across other IC and FedCiv customers.  Specifically, InTec developed, matured, and leveraged its high-end capabilities at difficult-to-penetrate NGA directorates to provide similar solutions to similar challenges at other highly sought-after IC and FedCiv customers.  This growth journey and strategy has afforded the Company customer intimacy, deep domain expertise, and insight into enterprise-level problems, enabling the Company to bring best practices and continuity across organizations, creating significant efficiencies and more effective solutions.

InTec’s talented and innovative management team is supported by highly technical and cleared talent equipped with advanced skill sets applicable across contracts, customers, and missions germane to national security and intelligence objectives.  Employees deliver high-end solutions—which span Systems Engineering and Integration, Intelligence Operations, Training & Certification, Program Management, and Information Technology (“IT”)—that address the entire spectrum of organizational challenges.  Through its Systems Engineering and Integration practice—the Company’s primary offering—employees leverage traditional and agile engineering approaches to deliver enterprise solutions for both cloud and traditional IT infrastructures, designing, building, integrating, and testing complex component subsystems into system, enterprise, and web-enabled solutions that deliver mission objectives.

With touchpoints across myriad national security systems responsible for tasking, collection, processing, exploitation, and dissemination intelligence processes, InTec will enable ANSER to fully operationalize its intelligence offerings, helping mission planners and decision-makers quickly and easily understand and act upon high-value geospatial data.

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

  • Buyers and investors seek providers of diversified, yet unique, solution sets tailored to specific customer missions and challenges
  • Significant demand for deeply embedded, long-standing, and growing client relationships across the IC, insulated from shifting budgetary priorities
  • Attraction toward highly cleared and technical talent with tenured support for classified data and systems
  • Buyers and investors remain focused on partnering with strong management teams with impressive industry experience and proven track records of growth

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 150 industry transactions since 2007, 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. 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

Analytic Services Inc (ANSER) Acquires InTec, LLC

FALLS CHURCH, Va., Dec. 16, 2021 /PRNewswire/ — Analytic Services Inc (ANSER) announced today it has acquired Fairfax-based InTec, LLC., a leader in delivering technical and management expertise across the federal government, to include Intelligence, Civil, and Defense Agencies. With the acquisition of InTec, ANSER broadens its capabilities as a leading public service not-for-profit providing systems engineering and integration, intelligence operations, mission assurance, and program management expertise in the fields of national security, homeland security, and public policy.

Steve Hopkins, ANSER President and Chief Executive Officer, said, “For sixty-three years ANSER has enhanced national and homeland security by strengthening public institutions. We provide thought leadership for complex issues through independent analysis and we deliver practical, useful solutions. ANSER values collaboration, integrity, and initiative, and we are client focused in all that we do. Because we were established for the purpose of public service and not for profit, we measure our success in the impact of our service. With InTec, our combined client-focused culture and innovative approach enables us to deliver to a broadened client base.”

Bruce Donaldson, Founder and Chief Executive Officer of InTec, said, “It is great to see that the years of hard work to develop and mature a very innovative and high-performance approach to address client needs in the Intelligence Community and elsewhere continues with a great company like ANSER.”

About ANSER

ANSER is a public service research institute organized as a not-for-profit corporation dedicated to informing decisions that shape the nation’s future. We provide objective studies and analyses to the national security, homeland security, and public policy communities using a diverse set of skills and capabilities that include Analysis of Alternatives, Acquisition Analysis, Workforce Analysis, Performance Measurement, Policy Formulation, Counter Weapons of Mass Destruction and Risk Assessment. Additionally, ANSER builds and leads technology development collaborations through its subsidiary, Advanced Technology International (ATI), specializing in organizing and managing research and development consortia on behalf of the federal government. For more information visit: www.anser.org.

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KippsDeSanto & Co. advises Entegra Systems Inc. on its sale to Acclaim Technical Services, LLC, a portfolio company of Blue Delta Capital Partners

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KippsDeSanto & Co. advises Entegra Systems Inc. on its sale to Acclaim Technical Services, LLC, a portfolio company of Blue Delta Capital Partners

KippsDeSanto & Co. is pleased to announce the sale of its client, Entegra Systems Inc. (“Entegra” or the “Company”), to Acclaim Technical Services, LLC (“ATS”), a portfolio company of Blue Delta Capital Partners.

Headquartered in Hanover, MD, Entegra is a leading provider of vital mission support and technology development enabling strategic and tactical intelligence missions across the Intelligence Community (“IC”) and Department of Defense (“DoD”).  The Company serves as a key partner in advancing and responding to its customers’ critical requirements, helping its customers conduct informed operations, and providing end-to-end mission support and sustainment throughout the entire mission lifecycle.

Supported by a cadre of highly cleared and technical subject matter experts, the Company delivers high-end capabilities to strategic and tactical intelligence missions, including intelligence analysis, collection support, software development, and reverse engineering, to support a myriad of national security requirements around Human Intelligence (“HUMINT”), hardware exploitation, Signals Intelligence (“SIGINT”) and SIGINT discovery, Geospatial Intelligence (“GEOINT”), and defensive and offensive cybersecurity, further entrenching Entegra as a go-to partner within a well-funded and highly coveted customer set, positioning the Company for future growth.

The transaction furthers ATS’ strategic efforts to position ATS as a leading-edge technology provider within the broader IC.  Entegra gives ATS scale to pursue several transformational prime opportunities that will further allow ATS to address national security challenges.

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

  • Intelligence-driven, high-end mission support and cybersecurity capabilities remain key M&A priority areas for buyers
  • Significant demand for deeply embedded, long-standing intelligence and defense relationships aligned with favorable budgetary funding
  • Strong demand for highly cleared and technical talent with legacies supporting classified programs
  • Buyers and investors remain focused on building leading growth platforms through add-on acquisitions, seeking to unlock value, accelerate growth, and scale the delivery model

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 140 industry transactions since 2007, 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. 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

Reston-Based Acclaim Technical Services (ATS) Acquires Entegra Systems

ATS positions as a middle-market leader in operational, mission, and technology services across the Intelligence Community (IC)

RESTON, Va., Dec. 02, 2021 (GLOBE NEWSWIRE) — Acclaim Technical Services (ATS), an emerging leader in specialized operational support, language, and technology services to the national security mission, has acquired Entegra Systems, LLC, a Hanover, Maryland-based provider of cyber technology solutions in support of defense, intelligence and national security missions. This acquisition further enhances ATS’ strategic expansion into technology to support its clients’ objectives, building upon the acquisition of Global Consulting Services (2020) and Axis of Engineering (2019).

Entegra Systems Inc., established in 2005, is an innovative provider of mission-critical solutions and services to U.S. government defense and intelligence customers. The company develops integrated solutions for enhanced situational awareness, operational planning, intelligence and geospatial analysis, and cyber and intelligence operations. Entegra is also a leading provider of services related to SIGINT development, collection, and analysis; mission and collection management; and intelligence analysis. Entegra has offices in Maryland, Virginia, and Georgia.

“We are excited to join the ATS family. I was really happy that we found an acquiring company with such a strong cultural alignment to Entegra and I am sure our employees will continue to thrive. The Entegra leadership team looks forward to the new capabilities, particularly in language and cultural advisory services, that we can bring to bear on our clients’ missions as well,” said Dean Johnson, Entegra Chief Executive Officer (CEO).

Dave Cerne, ATS CEO, stated, “We could not be more thrilled with the addition of Entegra to our amazing team, including their cadre of talented senior leaders, technologists, and analysts. They bring a depth of new capabilities to solve our customers’ hardest problems, including cyber solutions, SIGINT analysis capabilities, and a trademarked Natural Language Understanding System that will benefit many of ATS’ existing clients, along with many other additional solutions and experiences. Together, we will have over 500 talented professionals supporting the most complex national security missions.”

KippsDeSanto & Co. and Miles & Stockbridge served as advisor and legal counsel, respectively, to Entegra. Holland & Knight served as counsel to ATS.

About ATS: Backed by venture capital firm Blue Delta Capital Partners, ATS is a rapidly growing middle-market Intelligence Community-focused company providing Intelligence, Operational, Technology, Training, and Language Services. Started in 2000, ATS became an Employee Stock Ownership Plan company in 2013 and has been recognized as a Washington Post Top Workplace the last eight years.

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KippsDeSanto & Co. Advises VariQ on its Sale to Capgemini Government Solutions LLC

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KippsDeSanto & Co. Advises VariQ on its Sale to Capgemini Government Solutions LLC

KippsDeSanto & Co. is pleased to announce its role in the successful sale of its client, VariQ Corporation (“VariQ” or the “Company”), to Capgemini Government Solutions LLC, an independent operating division of Capgemini SE (ENXTPA:CAP) working with U.S. government agencies.

VariQ was founded in 2003 and serves as a provider of Software Development, Cybersecurity, and Cloud services for federal government departments and agencies across the United States. These services are delivered through multiple contract vehicles, including the Alliant 2 best-in-class contract vehicle. Additionally, the company holds a digital transformation entity (Rivet Logic, acquired in 2020) which serves a set of commercial clients and would join forces with Capgemini in the U.S. to expand digital capabilities and key technology partners.

We believe this transaction highlights several key trends in the Government Technology Solutions (“GTS”) M&A market:

  • Continued M&A demand for prime, Full-and-Open Best-in-Class vehicles
  • Large public companies in the GTS market continue to supplement organic growth with strategic acquisitions of well positioned businesses with in-demand Next Gen IT capabilities
  • Foreign buyers remain selective, seeking targets with access to high profile and well-funded U.S. Federal agencies

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 140 industry transactions since 2007, 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. 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

Capgemini signs agreement to acquire IT services provider VariQ, adding scalability and strengths to its Government Solutions capabilities in the U.S.

Acquisition adds scale and strengths to Capgemini’s Government Solutions capabilities in the U.S.

Paris, December 1, 2021 – Capgemini announced today, following the fulfillment of all regulatory requirements, the completion of the acquisition of VariQ. The provider of Software Development, Cybersecurity, and Cloud services for Federal government departments and agencies across the United States, will be integrated into Capgemini Government Solutions LLC, Capgemini’s independent operating division working with U.S. government agencies. This acquisition will strengthen the company’s position in the Federal market and build momentum for continued growth.

“Not only does the acquisition of VariQ augment our digital and agile capabilities but it also expands the set of industry-leading solutions that we are able to offer the US government agencies that we serve. It is a key part of our vision for growth in the Americas. I am delighted to welcome the VariQ team to the Capgemini Group,” said Jim Bailey, CEO of Capgemini’s Americas Strategic Business Unit and Group Executive Board Member.

VariQ’s range of services are delivered through multiple contract vehicles, including the Alliant 2 best-in-class contract vehicle. Additionally, the company holds a digital transformation entity (Rivet Logic) which serves a set of commercial clients and will join Capgemini in the U.S. to further expand its digital capabilities.

“The acquisition of VariQ marks an important moment for Capgemini Government Solutions,” said Doug Lane, CEO, Capgemini Government Solutions LLC. “The integration of its multi-disciplinary highly skilled team and expanded best in class contract vehicles will reinforce our ability to deliver on transformative digital initiatives for the agencies that we serve.”

“Joining Capgemini, with its international scale and breadth of services, will enable us to better meet the needs of our client agencies, with access to Capgemini’s extensive range of digital capabilities. It will also offer our people unrivalled career opportunities. We are really looking forward to our next chapter as part of the Group,” said Ben Edson, Founder & CEO of VariQ.

Capgemini previously announced the signature of the stock purchase agreement in September pending U.S applicable regulatory approvals at the time.

About Capgemini

Capgemini is a global leader in partnering with companies to transform and manage their business by harnessing the power of technology. The Group is guided everyday by its purpose of unleashing human energy through technology for an inclusive and sustainable future. It is a responsible and diverse organization of 290,000 team members in nearly 50 countries. With its strong 50-year heritage and deep industry expertise, Capgemini is trusted by its clients to address the entire breadth of their business needs, from strategy and design to operations, fueled by the fast evolving and innovative world of cloud, data, AI, connectivity, software, digital engineering, and platforms. The Group reported in 2020 global revenues of €16 billion.

About Capgemini Government Solutions LLC

Capgemini Government Solutions is committed to working with government clients to support them in their strategic, tactical and transformation initiatives. Capgemini helps organizations create sustainable value by employing innovative business process improvement strategies and applied solutions that utilize a unique method of engagement: the Collaborative Business Experience (CBE). By providing public and private sector experience, best practices, and proven tools and methodologies tailored for the U.S. government’s unique requirements, we help clients build knowledge and capabilities as we work together to drive transformation agendas. With a dedicated core team of professionals in Mclean, VA, Capgemini Government Solutions was formed in 2002 as an independent operating division of Capgemini to offer U.S. Government agencies deep transformation, consulting, and IT expertise.

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KippsDeSanto & Co. advises Flatirons Solutions, Inc. on its sale to TELEO Capital

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KippsDeSanto & Co. advises Flatirons Solutions, Inc. on its sale to TELEO Capital

KippsDeSanto & Co. is pleased to announce the sale of its client, Flatirons Solutions, Inc. (“Flatirons” or the “Company”), to TELEO Capital (“TELEO”).

Headquartered in Boulder, CO, Flatirons is a provider of end-to-end content lifecycle management software solutions that help top commercial airlines, tier-one OEMs, and government organizations worldwide manage complex aviation content and achieve higher levels of maintenance and flight operation productivity, optimize asset utilization, and realize operational / regulatory compliance. The Company has a rich history that spans over 25 years and includes deep relationships with marquee customers across the aerospace sector, including 8 of the top 10 global airlines, the top 3 aircraft engine OEMs, and numerous MRO, defense, and government customers.

The aerospace industry is rapidly adopting and expanding software-as-a-service (“SaaS”) based digital content management solutions that are replacing paper-based processes to manage content. Flatirons’ comprehensive product suite allows users to transform legacy arduous processes by effectively managing the full lifecycle of content from creation to consumption in a digital environment.

The Company’s software suite is OEM-agnostic and provides access to an up-to-date database of content for 150+ airframes, 130+ engines, and numerous subcomponents, which are seamlessly delivered through customer-centric software and consumed across multiple end-markets.

Flatirons’ with TELEO will accelerate innovations, furthering the Company’s leadership position in its markets and extending its content management functionality. By mid-2022, Flatirons will complete the launch of its new SaaS-based product suite as the Company works closely with two of the world’s largest airlines as inaugural customers of the fully cloud-based platform.

We believe this transaction highlights several key trends in the aerospace and enterprise technology M&A market:

  • Buyers are looking for companies with differentiated expertise, seamless software-based solutions, and deeply embedded relationships with key aerospace / defense customers
  • Continued emphasis on R&D investment is critical to capitalize on customers’ need for SaaS-based content management solutions
  • Sophisticated private equity buyers with intimate knowledge of target industries / explicit growth strategies continue to be avid investors in the aviation software market, 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 140 industry transactions since 2007, 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. 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

TELEO CAPITAL COMPLETES GROWTH EQUITY INVESTMENT IN FLATIRONS SOLUTIONS

Boise, ID and Los Angeles, CA – (November 9th, 2021) TELEO Capital Management, LLC (“TELEO”) announced the acquisition of Flatirons Solutions, Inc. (“Flatirons” or the “Business”) from Presse Participations. Flatirons is the global leader in technical content management solutions for the aviation and defense industries. This investment marks TELEO’s second investment in aviation software and fifth corporate carve-out since 2019.

Based in Boulder, CO, Flatirons offers a critical SaaS solution for the global aerospace industry which helps improve the productivity of maintenance procedures, ensuring regulatory compliance. TELEO’s investment will support the continued innovation of Flatirons’ software, driving significant operational efficiencies for the aerospace industry.

“The aerospace market is rapidly changing in response to regulations and technological advances. Flatirons provides organizations with a necessary software platform to efficiently deliver technical content and track completion of maintenance, service and installations while ensuring compliance with industry standards,” stated TELEO Capital.

“I am thrilled with this new chapter in our company history. TELEO and Flatirons share common values, especially when it comes to caring about our customers and employees. This partnership allows us to expand our capacity to serve the market,” stated Flatirons CEO, Stéphane Labadie.

“We are impressed with Flatirons’ innovation to date, the high quality of their staff and their top-tier customer base. Given their twenty years of leadership in the industry, we know they will fit perfectly into our expanding aviation software portfolio,” added Matt Scholl, an Operating Partner at TELEO.

KippsDeSanto & Co. served as the exclusive financial advisor to Flatirons on the transaction.

About Flatirons Solutions

Flatirons Solutions is a provider of technical content management solutions that enable global aviation and defense customers to create, publish and streamline critical information. Flatirons’ proprietary software continuously improves technical and regulatory content to align with necessary maintenance procedures. Their solutions translate content into actionable tasks and jobs, tracking the process from start to finish. Flatirons is based in Boulder, CO with additional offices in India and Europe.

For additional information, please visit www.flatironssolutions.com.

About TELEO Capital

TELEO Capital is a lower middle market private equity firm that looks to invest in opportunities where its strategic thought, operational resources and capital base empower management to perform and execute their business plan. TELEO brings a successful track record of executing corporate carve-outs, recapitalizing broken balance sheets, acquiring founder-owned companies, and implementing buy and build strategies for its portfolio companies. TELEO targets opportunities in the technology & software, healthcare IT, business services and industrial sectors. The firm is headquartered in Boise, ID with an additional office in Los Angeles, CA.

For additional information, please contact Matt Oehlmann at moehlmann@teleocapital.com or visit: www.teleocapital.com.

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”), Government Technology Services (“GTS”), and Enterprise Technology (“ET”) companies, is pleased to share its DealView – the “Top 10 M&A Deals of the Quarter” – for the quarter ended December 31, 2021.

Of the above transactions, the following were especially noteworthy:

The A&D deal of the quarter is Tailwind Two Acquisition Corporation’s (NYSE: TWNT) (“Tailwind Two”), a special purpose acquisition company, pending $1.58 billion business combination agreement with Terran Orbital Corporation (“Terran Orbital” or the “Company”). The combined company will operate as Terran Orbital Corporation, with plans to list on the NYSE under the symbol LLAP. The deal will give Terran Orbital access to $345 million of cash from Tailwind Two’s cash-in-trust, $50 million from a private investment in public equity (“PIPE”) with participation from AE Industrial Partners, Beach Point Capital, and Lockheed Martin, as well as $75 million of additional financial commitments from Francisco Partners and Beach Point Capital. This agreement continues the trend of space companies going public through SPAC’s following recent announcements of Redwire, Astra Space, BlackSky, and others. Headquartered in Boca Raton, Florida, Terran Orbital provides satellites for commercial and government customers including military and intelligence agencies, NASA, and the European Space Agency. With the growth capital raised from the business combination, Terran Orbital will be able to expand existing manufacturing capabilities to deliver new technologies quicker and more affordably. Small satellites will play a critical role in the future of space infrastructure and exploration, as well as provide customers with real time data to make informed and actionable decisions. LLAP expects to have a positive adjusted EBITDA by 2023 and ~$3 billion in revenue by 2026, a significant increase from $35 million in revenue expected in 2021. Additionally, LLAP is capitalizing on its fully integrated manufacturing capabilities to launch the most advanced Earth observation constellations of small satellites. This will provide highly persistent, real-time Earth imagery as a service, making Earth observation data more abundant and accessible than ever before. The transaction is expected to close in the first quarter of 2022 subject to shareholder approval and other customary closing conditions.

The GTS deal of the quarter is the $1.9 billion pending acquisition of Pacific Architects and Engineers (NASDAQ: PAE) (“PAE”), by Amentum Government Services Holdings, LLC (“Amentum”), a portfolio company of Lindsay Goldberg and American Securities, LLC, in an all-cash transaction. Headquartered in Arlington, VA, PAE provides a broad range of services and operational solutions for the U.S. government, allied governments, and international organizations. The combined company will become one of the largest Federal government contractors, with more than $9.0 billion in annual revenue. The addition of PAE will complement Amentum’s intelligence and technology services capabilities, expand customer relationships across the Department of Defense (“DoD”), Department of State, NASA, and the Intelligence Community (“IC”), and significantly increase Amentum’s scale and suite of capabilities. The transaction reinforces the ongoing prioritization by buyers of acquisition targets with deep relationships with difficult to penetrate customers within the DoD and the IC. Other recent acquisitions of targets with embedded positioning across the DoD/ IC include the acquisition of Asymmetrik by BlueHalo and of Entegra Systems, LLC, by Acclaim Technical Services. Under the merger agreement, PAE shareholders will receive $10.05 per share in cash, a 70% premium to PAE’s closing price on the last day of trading prior to the announcement. This is the third acquisition this year of a public target by a private equity-sponsor or portfolio company. In May, Veritas Capital and Evergreen Coast Capital acquired Cubic Corporation (NYSE: CUB) for $3.0 billion, and Peraton (a portfolio company of Veritas Capital) acquired Perspecta Inc. (NYSE: PRSP) for $7.1 billion. PAE shareholders have yet to approve the transaction, following the end of a “go-shop” period on November 29, 2021. However, PE Shay Holdings, LLC, which currently owns 22.5% of PAE’s outstanding shares, has agreed to vote to approve the transaction in accordance with management. The deal is expected to close in the first quarter of 2022.

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 140 industry transactions since 2007, 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.

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KippsDeSanto & Co. advises Markon Solutions on its merger with Anser Advisory, LLC, a portfolio company of Sterling Investment Partners

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KippsDeSanto & Co. advises Markon Solutions on its merger with Anser Advisory, LLC, a portfolio company of Sterling Investment Partners

KippsDeSanto & Co. is pleased to announce the merger of Markon Solutions (“Markon” or the “Company”) with Anser Advisory, LLC, a portfolio company of Sterling Investment Partners.

Headquartered in Falls Church, VA, Markon is a leading management consulting and advisory firm addressing critical infrastructure and mission support for a national security customer base, spanning the Intelligence Community (“IC”), Department of Defense (“DoD”), and Federal and Civilian (“FedCiv”) agencies.

Backed by a team of highly-cleared engineers, architects, program / construction managers (“PM/CM”), and security professionals, Markon has a deep heritage supporting and managing its customers’ most critical secure infrastructure, capital projects, and

related mission requirements, to include facilities management, security, technology, finance, and training. The Company’s comprehensive consulting solutions and embedded positions supporting its well-funded, high-profile customers has positioned Markon at the forefront of the Federal secure facilities and infrastructure market with several well-established growth opportunities to support the accelerated need of customers to protect their most critical assets.

The acquisition adds Markon’s expansive Federal market consulting expertise to Anser’s existing civil and social infrastructure portfolio.

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

  • Secure infrastructure and critical missions support remain well-funded and of vital importance to broader National Security objectives;
  • 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, paired with highly differentiated management consulting models, remain critical differentiators for sellers; and
  • Private equity continues to deploy capital in the government services market – via new platforms and add-ons to existing portfolio companies to further diversify current offerings and further build the middle market

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

Anser Advisory and Markon Solutions Announce Merger

Santa Ana, CA. — October 12, 2021 – Anser Advisory (“Anser”), the 17th largest PM firm according to ENR, second fastest growing AE firm in 2020 according to Zweig Group, and a Certified Great Places To Work organization, and Markon Solutions (“Markon”), the 33rd PM-for-Fee and 61st CM-for-Fee firm in 2021 according to ENR and a perennial Washington Post Top Workplaces firm, are pleased to announce the merging of their organizations.

The combination of Anser and Markon creates a 650+ employee organization comprised of world-class leaders and innovators who support mission critical projects globally for some of the nation’s most prestigious organizations, including the intelligence community, federal civilian and defense agencies, transportation, aviation, water/wastewater, energy, education, housing, cultural, healthcare and municipal clients.

Markon will operate as a wholly-owned subsidiary of Anser Advisory, a portfolio company of Sterling Investment Partners. Existing clients of both firms should expect no noticeable change in personnel or support.

Anser’s CEO Bryan Carruthers noted, “The combination of our organizations is transformative. The Markon expertise within the federal market, particularly the intelligence community and civilian and defense agencies, coupled with their established presence within the Virginia/Maryland/DC area are perfectly complementary to the Anser expertise in aviation, transportation, water, education, and energy. Our combined organization will continue to deliver innovative solutions coupled with world-class people in support of our client’s critical missions across federal, civil, and social infrastructure. Markon’s President Matt Dean and I are thrilled to bring our organizations together.”

“Joining with Anser Advisory not only better positions us to compete against the most successful firms in federal contracting, but also provides great depth and variety in terms of the opportunities it creates for our employees,” added Matt Dean. “We will continue to serve our current clients as Anser’s federal division, and our employees will also have the ability to support a larger platform of projects both locally and across the country. Being part of a growing company creates more opportunities for all. Furthermore, this will enable greater investment in innovation, especially as it relates to our security and enterprise technology solutions, which represent new territory for Anser’s platform.”

Markon will initially operate as Markon Solutions, an Anser Advisory Company. Together, the companies will ultimately co-create the framework for a fully integrated organization under the Anser Advisory brand.

Houlihan Lokey served as financial advisor, and Dechert LLP, Seyfarth Shaw LLP, and Morrison & Foerster LLP acted as legal counsel, to Anser Advisory and its affiliates.

KippsDeSanto & Co. served as exclusive financial advisor, and Greenburg Traurig provided legal counsel, to Markon Solutions.

About Markon Solutions

Founded in 2007, Markon Solutions is a nationally recognized professional services firm headquartered in Falls Church, VA. With an elite team of high-performing leaders and innovators, we serve as trusted advisors managing tasks on behalf of our clients, so that they can stay focused on their mission. Markon’s impressive workforce leads with humility and respect, takes initiative, puts corporate and client integrity before personal gain, and are champions of fostering a diverse and inclusive workplace culture where our employees and clients benefit from a wide range of collective viewpoints, experiences, and talents. Specializing in six core service areas—acquisition, finance, facilities, security, enterprise technology, and training—Markon is consistently recognized on the ENR Top 50 Program Management and Top 100 Construction Management-for-Fee Firms, Washington Post Top Workplaces, and Virginia Business Best Places to Work lists. Markon is also a 2021 Top Workplaces USA winner, as well as the first GEN (Gender Equity Now) certified organization on the East coast and in the government contracting industry.

About Anser Advisory

Anser Advisory is an ENR Top 50 Program Management firm, and Great Place to Work® designated 2021 Best Workplaces in Consulting & Professional Services™, specializing in capital program advisory and consulting services, organization preparedness, strategy, funding, process development, program controls and project, program, and agency construction management. Anser offers clients solutions that address owner pain points across the capital development cycle from pre-planning through construction and closeout within a diverse range of social and civil infrastructure end markets.

About Sterling Investment Partners

Sterling Investment Partners is a private equity firm that has been investing in and building middle-market companies for over 30 years with a highly experienced, cohesive team of senior investment professionals. Sterling focuses on business services and value-added distribution, investing in businesses that the firm believes have strong, sustainable competitive advantages and significant opportunities for value creation. The firm has completed transactions representing $19.4 billion in gross transaction value since inception. www.sterlinglp.com.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.

 

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KippsDeSanto & Co. advises ATL Partners on its acquisition of GEOST, Inc.

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KippsDeSanto & Co. advises ATL Partners on its acquisition of GEOST, Inc.

KippsDeSanto & Co. is pleased to announce the acquisition of GEOST, Inc. (“GEOST” or the “Company”) by our client, ATL Partners.

Founded in 2004 and headquartered in Tucson, Arizona, GEOST is a rapidly growing company that specializes in the design and integration of small-to-medium sized electro-optical / infrared sensors, primarily serving the U.S. Department of Defense (“DoD”) and Intelligence Community.

GEOST’s offerings span a range of applications, including space domain awareness, intelligence, surveillance & reconnaissance, missile warning, and laser communication. The Company is well-positioned within its core market, as federal funding continues to prioritize the space domain and its myriad mission-critical applications.

We believe this transaction highlights several key trends in the Space / Aerospace / Defense M&A market:

  • Significant interest for companies aligned with priority funding domains such as space, particularly with mission-critical applications
  • Attractiveness of companies at an inflection point in their growth cycle, who will benefit from the right investment partnership to accelerate organic and inorganic growth initiatives
  • Strong appetite for well-positioned assets that have successfully navigated the macroeconomic impacts of the COVID-19 pandemic

About KippsDeSanto & Co.

KippsDeSanto & Co. is an investment banking firm focused on serving growth-oriented Space / 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

 Public Press Release

NEW YORK–(BUSINESS WIRE)–ATL Partners (“ATL”) announced today that it has made a majority investment in GEOST, LLC (“GEOST” or the “Company”). Headquartered in Tucson, Arizona, GEOST is a leading designer and integrator of small-to-medium sized electro-optical/infrared sensors for high-value, national security space missions. ATL’s investment will support GEOST as the Company enters the next phase of growth.

Since its founding in 2004, GEOST has been focused on the cutting edge of the United States Department of Defense and the intelligence community’s efforts to enhance the country’s national security capabilities in space through optical systems and solutions. GEOST is a leading provider of small and medium, low-cost payloads for space domain awareness, intelligence, surveillance and reconnaissance, missile warning, and laser communication applications. These markets are experiencing rapid growth as the United States increases its focus on new architectures to enhance the survivability and resiliency of its national security space assets.

“GEOST is experiencing an exciting phase of growth and we are very excited to have found a partner in ATL to help us scale with our customers. They share our enthusiasm for the GEOST mission to support national security space programs as we work to address the near-peer threat in space,” said Dr. Anthony (Tony) Gleckler, President and Founder of GEOST. “We were energized when ATL approached us with an investment thesis that aligned so well with our vision and they will support us as we invest in future opportunities.”

“GEOST represents a truly unique asset in the space market that punches well above its weight. It will serve as ATL’s platform to invest in industry-leading technology and capabilities in the space domain that address the national security needs of the United States and its allies,” said Sanjay Arora, Partner at ATL, and Michael Kramer, Principal at ATL. “We are excited to partner with Tony and the GEOST management team to accelerate the Company’s growth through organic initiatives as well as strategic acquisition opportunities.”

Quilty Analytics served as financial advisor and Williams Mullen P.C. served as legal counsel to GEOST. KippsDeSanto & Co. served as financial advisor and Gibson, Dunn & Crutcher LLP served as legal counsel to ATL.

About GEOST:

GEOST is a rapidly-growing designer and integrator of small-to-medium sized, electro-optical / infrared sensors for high-value, National Security Space missions. The Company was founded in 2004 and has served its core National Security Space customer base since inception. GEOST employs more than 75 professionals and is headquartered in Tucson, AZ with additional facilities in Virginia.

About ATL Partners:

Founded in 2014, ATL Partners is a premier sector-focused private equity firm that invests in aerospace, transportation and logistics companies. ATL brings deep sector expertise to its investment approach with 10 investment professionals and six Executive Board members who have decades of combined operating experience in each of ATL’s core sectors. For more information about ATL Partners, visit www.atlpartners.com.