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KippsDeSanto & Co. Advises Atlas Research LLC on its sale to Customer Value Partners, LLC

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KippsDeSanto & Co. Advises Atlas Research LLC on its sale to Customer Value Partners, LLC

KippsDeSanto & Co. is pleased to announce the sale of Atlas Research LLC (“Atlas” or the “Company”) to Customer Value Partners, LLC (“CVP”).

Headquartered in Washington, D.C., Atlas provides evidence-based and innovative transformation solutions targeted at the most pressing, sizable, and complex health, healthcare, and social services challenges facing Federal agencies.  Through implementation of data-driven insights and analytics, Atlas helps drive improved organizational effectiveness and transformation campaigns by optimizing technology, operations, and programs across the full lifecycle of customer needs.

Since its founding in 2008, Atlas has built deep and longstanding relationships across the Federal health market due to its role as a trusted partner capable of repeatedly delivering successful large scale, highly-visible, complex transformations across diverse enterprise-wide and organizational transformation efforts.  Notably, the Company has established embedded relationships within the Department of Veterans Affairs (“VA”), the Department of Health and Human Services (“HHS”), and the Department of Defense (“DoD”), amongst others.

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

  • Favorable view of exposure to large, growing Federal health market given recent change in administration
  • Strong demand for access to the VA and HHS via major contract vehicles and BPAs (e.g., access to $1B VHA IHT IDIQ and $322M FDA BPA) as well as longstanding and embedded customer intimacy
  • Desire for bolstered capabilities in leading edge digital and transformation solutions and expertise
  • Continued emphasis on acquiring companies with deep personnel benches (highlighted by technical subject matter expertise, level of education, and requisite industry credentials)
  • Strategic buyers place high value on the ability to complement and expand capabilities portfolio to further establish customer footprint without compromising on cultural alignment

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

CVP Acquires Atlas Research, Broadens Healthcare Strategy, Consulting and Research Offerings

Fairfax, VA – August 24, 2021 – Customer Value Partners, Inc. (CVP), a business and technology consulting firm that helps organizations prepare for a culture of Continuous Change, announces today its acquisition of Atlas Research (Atlas), an award-winning firm that partners with federal health organizations to drive mission-critical innovation and transformation. Through this acquisition, CVP further realizes its goal of becoming a premier mid-tier comprehensive healthcare solutions and citizen services consulting and systems integration firm. CVP acquired Atlas because of its similar culture, values, and vision for the future as well as its exceptionally talented team.

With Atlas, CVP adds new capabilities spanning research and evaluation, organizational transformation and innovation, strategic communications, and human capital solutions; deep domain expertise in veterans and military health, pandemic planning and response, health equity, mental health, and rural health; and a marquee federal health customer base. This merger, done solely through the strength of CVP’s own resources, adds over 170 professionals with deep healthcare and consulting experience to the CVP family.

Atlas brings a franchise position at the US Department of Veterans Affairs, a client they have served since 2008. Atlas accelerates CVP’s growth through the addition of major new health clients, domain expertise, capabilities, and contract vehicles. The acquisition strengthens CVP’s strategic focus on federal health agencies by adding a strong portfolio in the VA and expanding our portfolio across HHS. It includes the Veterans Health Administration (VHA) Integrated Healthcare Transformation (IHT) contract—a 10-year, $1 billion indefinite delivery/ indefinite quantity (IDIQ). It opens up access to the FDA with the $322M ceiling Business Transformation Team (BTT) BPA and the $100M ceiling Integrated Solutions (IS) BPA. It also provides a new government-wide vehicle for CVP’s transformation and human capital offerings via GSA’s Human Capital and Training Solutions (HCaTS) BPA (UNR).

“CVP’s acquisition of Atlas is the realization of a shared vision for an industry-leading, comprehensive mid-tier healthcare technology and consulting firm primed for growth,” said Atlas Co-Founder and CEO Ryung Suh. “The marriage of our respective capabilities, experience, and mission-driven cultures will translate to added value for our clients and their efforts to improve the health and wellbeing of our fellow citizens.”

“CVP’s vision as a fully integrated healthcare solutions and citizen services firm relies on expanding from a technology-centric services innovator to an end-to-end advisory, research, technology, and managed services firm,” said Anirudh Kulkarni, CVP Founder and CEO. “Atlas’ experience as the trusted transformation partner of clients across the VA and HHS provide the advisory and consulting capabilities to accelerate CVP’s growth strategy.”

 About CVP

Customer Value Partners (CVP) is an award-winning business and next-gen technology consulting company that helps organizations navigate disruption and prepare for a culture of Continuous Change. We solve critical problems for healthcare, national security, and public sector clients through innovative strategies and solutions that leverage technologies and industry expertise in areas including Technology Modernization, Data Science & Engineering, Business Transformation, and Cybersecurity. CVP delivers unparalleled excellence to clients and employees through a strong culture of integrity, engagement, respect, and a passion for our clients’ missions.

Learn More

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KippsDeSanto & Co. advises CRAssociates, Inc. on its sale to Valor Healthcare, a portfolio company of Trive Capital

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KippsDeSanto & Co. advises CRAssociates, Inc. on its sale to Valor Healthcare, a portfolio company of Trive Capital

KippsDeSanto & Co. is pleased to announce the sale of its client, CRAssociates, Inc. (“CRA” or the “Company”) to Valor Healthcare (“Valor”), a portfolio company of Trive Capital.

Headquartered in Newington, Virginia, CRA is a leading operator of Community-Based Outpatient Clinics (“CBOCs”) for the Department of Veterans Affairs nationwide, providing the U.S. Veteran population with easy and convenient access to quality healthcare. These clinics provide outpatient services, including but not limited to routine diagnostic procedures, immunizations, behavioral healthcare, and health and wellness visits.  In addition, CRA manages an acclaimed occupational health program with multiple clinics spanning several states.

The transaction is expected to enhance Valor’s geographic reach and strengthen its position within existing core markets.

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

  • Enhanced interest in health-related markets given ongoing demographic and anticipated budget trends
  • Significant interest for companies with entrenched customer relationships and strong past performance qualifications
  • Private equity continues to aggressively deploy capital through its existing portfolio companies to supplement growth and accelerate to scale

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

October 5,2021

Valor Healthcare Acquires CRAssociates

 Dallas, Texas – Valor Healthcare, Inc. (“Valor” or the “Company”), a portfolio company of Trive Capital, is excited to announce its recent acquisition of CRAssociates, Inc. (“CRA”).  Founded in 1997 and headquartered in Springfield, VA, CRA is an outsourced provider of Community-Based Outpatient Clinics (“CBOC”) for Veteran Affairs Medical Centers. Key service offerings include design and development of mission critical healthcare facilities logistics and management of healthcare professionals to provide comprehensive, cost-effective healthcare services for government and corporate clients throughout the United States.

Dr. Scott Wise, CEO of Valor and a veteran himself stated, “Valor is a leader in the CBOC market, and we are excited about the addition of the CRA leaders and staff to join in our continued success and expansion. We share in our passion for the mission and look forward to continuing to enhance our healthcare service offerings for our federal government partners.”

“We would only embark on the transfer of our CRA family to the best leader in our industry as we believe there is no compromise on quality and doing what is right for our veterans,” commented Charlie “Chief” Robbins, COO, Senior Executive Vice President at CRAssociates, Inc.  “With their leadership and combined CRA leadership we now have here at CRA, Valor becomes a powerful leader postured for growth and success for the future across the U.S.”

Conner Searcy, Managing Partner at Trive, added, “We have been pleased with our partnership with the Valor management team and continue to be firm believers in the Company’s mission. The addition of CRA is the first step in expanding the Company’s reach in serving our nation’s veterans and brings additional capabilities in the occupational health and wellness space. The team is keen on continuing to provide high quality healthcare and ancillary services in our communities and serving federal government customers.”

Valor is actively seeking add-on opportunities in the federal agency contracted healthcare services industry, including but not limited to, medical or medical facility contracting, mental health and behavioral services, onsite healthcare and wellness for federal offices, government and medical staffing, and OCONUS opportunities within the healthcare and government contracting industries.

About Valor Healthcare, Inc.

Valor Healthcare Inc. will now operate more than 50 VA community-based outpatient clinics in the United States as a contractor for the US Department of Veteran Affairs. Valor provides a full range of medical services to veterans through the operation of CBOCs tailored to meet the specific needs of local VA medical centers. The company’s comprehensive set of services includes primary care, diagnostics, laboratory, telehealth, behavioral health, and occupational health and wellness.

About Trive Capital

Trive Capital is a Dallas, Texas based private equity firm with approximately $3.6 billion in assets under management. Trive focuses on investing equity and debt in what it sees as strategically viable middle-market companies with the potential for transformational upside through operational improvement. We seek to maximize returns through a hands-on partnership that calls for identifying and implementing value creation ideas.

The Trive team is comprised of seasoned investment professionals who have been involved in over 100 middle-market transactions representing in excess of $6 billion in revenue across Trive’s targeted industry sectors and situations.

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

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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 September 30, 2021.

Of the above transactions, the following were especially noteworthy:

The A&D deal of the quarter is Parker Hannifin Corporation’s (NYSE: PH) pending $9.9 billion acquisition of Meggitt plc (“Meggitt” or the “Company”) (LSE: MGGT). Meggitt, a leading engineering company headquartered in Coventry, United Kingdom (“U.K.”), provides high performance components and sub-systems for aerospace, defense, and selected energy markets. The acquisition of Meggitt nearly doubles the size of Parker Hannifin’s Aerospace Systems segment and provides economies of scale that will enable the combined entity to better serve their customers through technological innovation, a broader combined product portfolio, and expanded geographic footprint. To alleviate national security concerns and help win the U.K. government’s support, Parker Hannifin agreed to several legally binding commitments including, maintaining Meggitt’s U.K. headquarters, boosting R&D expenditures in the country, and ensuring that Meggitt continues to meet its contractual obligations. One week after the announcement of Parker Hannifin’s acquisition proposal, TransDigm Group Inc. (NYSE: TDG) made an unsolicited offer of $9.7 billion to acquire Meggitt. However, on September 7, 2021, TransDigm withdrew its proposal citing “limited due diligence information” being made available. On September 21, 2021, an overwhelming majority of Meggitt shareholders approved the acquisition offer from Parker Hannifin. The transaction is expected to close in the third quarter of 2022.

The GTS deal of the quarter is the $1.65 billion acquisition of Alion Science and Technology Corporation (“Alion”), a portfolio company of Veritas Capital, by Huntington Ingalls Industries, Inc. (“HII”) (NYSE: HII). Based in McLean, VA, Alion provides advanced engineering and Research and Development services in the areas of Intelligence, Surveillance, and Reconnaissance (“ISR”), military training and simulation, cyber, data analytics, and other technology based solutions to the Department of Defense and Intelligence Community. HII will integrate Alion into its Technical Solutions division. The transaction represents another HII acquisition of a high-growth defense and national security company, following its acquisition of the Autonomy division of Spatial Integrated Systems, Inc. in January of 2021. The acquisition of Alion is one of several high-profile deals recently consummated in 2021 that highlight a continued desire by both public and private equity-backed strategic buyers to make transformational acquisitions of scale. Other noteworthy recent deals of size include the acquisition of Dovel Technologies, Inc. by Guidehouse, LLP and acquisition of Salient CRGT by GovernmentCIO, LLC. Total GTS deal volume in 2021 is approaching 150 year-to-date, or 200 from an annualized perspective, which is 80% and 50% higher than the 111 and 133 deals closed in 2019 and 2020, respectively.

KippsDeSanto & Co is an investment banking firm focused on serving growth-oriented Aerospace / Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity and industry experience. We help market leaders realize their full strategic value. Having advised on over 100 industry transactions, KippsDeSanto is recognized for our analytical rigor, market insight, and broad industry relationships. There’s no substitute for experience. For more information, visit www.kippsdesanto.com.

Securities and investment banking products and services are offered through KippsDeSanto & Co., a non-banking subsidiary of Capital One, N.A., a wholly owned subsidiary of Capital One Financial Corporation. KippsDeSanto is a member of FINRA and SIPC. Products or services are Not FDIC Insured, Not Bank Guaranteed, May Lose Value, Not a Deposit, and Not Insured By Any Federal Governmental Agency.

 

 

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KippsDeSanto & Co. advises BEI Precision Systems & Space Company, Inc., a portfolio company of J.F. Lehman & Company, on its sale to Quantic Electronics, a portfolio company of Arcline Investment Management

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KippsDeSanto & Co. advises BEI Precision Systems & Space Company, Inc., a portfolio company of J.F. Lehman & Company, on its sale to Quantic Electronics, a portfolio company of Arcline Investment Management

KippsDeSanto & Co. is pleased to announce the sale of BEI Precision Systems & Space Company, Inc. (“BEI Precision” or the “Company”), a portfolio company of its client J.F. Lehman & Company, to Quantic Electronics, a portfolio company of Arcline Investment Management.

Headquartered in Maumelle, AR, BEI Precision designs and manufactures the highest performing and most resilient and reliable position feedback sensors and frequency reference technologies for mission-critical space, land, air, and sea applications. BEI Precision has a diverse portfolio of proprietary technologies, including state-of-the-art space encoders, crystal oscillators, and other military sensors.

The Company has built a robust portfolio of sole-sourced, long-term contracts in partnership with key prime partners and government end customers. As a result, BEI Precision’s products are designed into a number of classified efforts as well as other high priority programs across space and defense. BEI Precision also has a growing footprint within the high growth and emerging commercial space market which it addresses with its proprietary encoder and oscillator product offerings. The Company’s established presence across numerous well-funded and strategically important market segments positions it well for continued growth in the future.

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

  • Space remains a highly coveted market segment because of its importance to National Security objectives
  • Strong preference for defense and space companies with technically differentiated, proprietary products and embedded positions on sought-after programs
  • Sponsors continue to seek acquisitions with accomplished management teams, strong revenue and earnings visibility, and highly actionable growth levers

 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 Releases

J.F. Lehman & Company Completes Sale of BEI Precision

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.

BEI Precision designs, engineers, and manufactures highly accurate, resilient, and reliable position feedback sensors and frequency reference technologies for mission-critical space, land, air, and sea applications. Headquartered in Maumelle, AR, the Company’s products are designed into many of the U.S. government’s highest priority, long-life programs.

Since acquiring BEI Precision in 2017, JFLCO worked closely with management to successfully identify and integrate two strategic acquisitions, overhaul the Company’s R&D and business development functions, and optimize manufacturing operations. In turn, the Company has developed and delivered industry-leading products for numerous programs of national significance, resulting in substantial revenue and earnings growth.

“Our successful partnership with management has enabled BEI Precision to transform from a small, stable business unit of a larger corporate parent into a standalone, high-growth enterprise with state-of-the art products occupying sole-source positions on high priority space, electronic warfare and radar programs,” said Steve Brooks, Chairman of BEI Precision’s Board of Directors and Partner at JFLCO.

Mark Mirelez, President and Chief Executive Officer of BEI Precision, commented, “Today’s milestone is a validation of the market leading position, operational excellence, and culture that we have worked tirelessly to achieve. We are immensely grateful for JFLCO’s support and look forward to continuing to deliver on future growth opportunities with our new partners at Quantic Electronics.”

“We are extremely proud of the accomplishments Mark and his team achieved during our ownership,” added Will Hanenberg, a member of BEI Precision’s Board of Directors and Managing Director at JFLCO. “As a result of their efforts, BEI Precision is uniquely-suited to address the dynamic requirements of its demanding space and military customers, and we believe Quantic Electronics is the ideal partner to help guide the Company through the next phase of its growth.”

KippsDeSanto & Co. served as exclusive financial advisor to JFLCO and Jones Day served as lead legal counsel. BakerHostetler provided legal support related to international trade, government contracts, and defense security compliance matters.

Quantic™ Electronics Acquires BEI Precision

Maumelle, AR, August 17, 2021 — Quantic™ Electronics (“Quantic”), a portfolio company of Arcline Investment Management (“Arcline”), today announced the acquisition of BEI Precision (“BEI”) from J.F. Lehman & Company. BEI designs, engineers, and manufactures highly accurate, resilient, and reliable position feedback sensors and frequency reference technologies for mission-critical space, land, air, and sea applications. The Company’s products are designed into many of the U.S. government’s highest priority, long-life programs.

“Our strategy is to acquire world-class, mission-critical-electronic component manufacturers with significant long-term growth potential. BEI’s technology, products, and people fit perfectly with this strategy,” said Kevin Perhamus, President and CEO of Quantic Electronics. “This acquisition further establishes Quantic as a leading supplier of critical components for space, aerospace, and defense applications. BEI brings more than 60 years of experience designing and manufacturing proprietary optical encoders, scanners, accelerometers, and frequency products. We’re excited to partner with the BEI team to continue building upon this heritage to offer new and exciting products for our shared customers.”

Mark Mirelez, President and Chief Executive Officer of BEI Precision, commented, “Today’s milestone is a validation of the market leading position, operational excellence, and culture that we have worked tirelessly to achieve. We look forward to continuing to deliver on future growth opportunities with our new partners at Quantic Electronics.”

Evercore served as financial advisor to Quantic.

About Quantic Electronics

Quantic is an electronic component company focused on defining and delivering the future of mission-critical electronics. We have over a century of combined experience as reliable problem-solvers and trusted partners in military, aerospace, industrial and commercial markets. www.quanticnow.com.

About Arcline Investment Management

Arcline is a growth-oriented private equity firm that seeks to invest in thriving middle market businesses with structurally recurring revenue streams in high value industries. Arcline’s differentiated investment strategy combines deep business model expertise, proactive thematic research, an unrelenting focus on the upside and a collaborative, management-first approach to value creation. The firm’s primary sectors of interest include defense, aerospace, critical infrastructure services, industrial & biopharmaceutical technology, life sciences and specialty materials. Launched in 2019, Arcline currently has $4.3 billion in cumulative capital commitments. The firm’s more than 35 professionals are predominantly based in New York and San Francisco. For more information about Arcline’s investment philosophy and values, visit www.arcline.com. 

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KippsDeSanto & Co. Advises LeapPoint on its sale to Renovus Capital Partners

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KippsDeSanto & Co. Advises LeapPoint on its sale to Renovus Capital Partners

KippsDeSanto & Co. is pleased to announce the sale of its client, LeapPoint (“LeapPoint” or the “Company”), to Renovus Capital Partners (“Renovus”).

Headquartered in Reston, VA, LeapPoint is a leading digital consulting firm that delivers cloud application solutions to drive enterprise change and unlock tangible and quantifiable value for its customers to satisfy the increasing demand for integrating cloud applications in the marketplace.  The Company’s customers include Fortune 500 and blue-chip commercial customers across the finance, healthcare, and consumer goods verticals as well as select government agencies.

Leveraging intimate understanding of complex system interoperability and symbiotic partnerships with innovative technology firms, LeapPoint helps customers develop and implement formalized roadmaps to optimize enterprise efficiency and eliminate challenges associated with siloed functional areas (e.g., IT, marketing, finance, and HR) operating on myriad systems.

LeapPoint’s partnership with Renovus will enable the Company to fuel its end-to-end connected work approach for various technology implementations to become a leading provider for consolidating and connecting cloud applications across the enterprise.

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

  • Significant market demand for highly-skilled employees and in-demand capabilities focused on technology and integrating cloud applications
  • Continued demand for innovative companies that are poised to capitalize on key market growth drivers (i.e., digital acceleration, marketing technology rationalization, and hyper-personalization at scale)
  • Private equity continues its appetite to deploy capital through new platform investments, particularly for companies with strong management teams / highly-skilled employees and differentiated technological capabilities in growing markets

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

Renovus Capital Partners Announces Strategic Acquisition of Leading Digital Consulting Firm, LeapPoint

RESTON, Va. and WAYNE, Pa., July 21, 2021 /PRNewswire/ — Renovus Capital Partners (“Renovus”), a Philadelphia-area private equity firm, announced today that it has acquired LeapPoint, LLC (“LeapPoint”), the industry-leading digital consulting firm specializing in connecting work, technology, and talent to drive unparalleled business experiences and outcomes.

Recognized by Forbes and Vault as a top consulting firm four years in a row, the acquisition follows a period of record-setting growth for LeapPoint as it continues to drive digital transformation for some of the world’s largest companies. As both an Adobe Gold partner and Workfront partner of the year, Adobe’s acquisition of Workfront maximized LeapPoint’s ability to deliver deeper and broader solutions to clients across finance, healthcare, and retail.

“During and post COVID, the importance of connected digital solutions to improve customer and employee experiences is greater than ever,” said Jesse Serventi, Founding Partner at Renovus. “LeapPoint’s innovative approach to connected digital experiences is transforming the biggest companies in the world. Under our partnership, we plan to help LeapPoint scale even faster to a larger set of enterprise clients.”

“This is an exciting and pivotal time for LeapPoint employees, clients and the customers they serve,” said LeapPoint CEO Nicholas DeBenedetto. “Renovus shares our people-first mindset and we are excited to work with them to bring rocket fuel to our end-to-end Connected Work breadth of services for Adobe, Adobe Workfront and other technology implementations. Together, we align to create a driving force and disruptor in the marketplace.”

LeapPoint’s multidisciplinary team of consultants consists of former industry practitioners across vertical markets committed to delivering a human-centered approach to unlocking how people and systems come together. The LeapPoint executive leadership team will remain unchanged and CEO Nicholas DeBenedetto will hold a seat on the Board of Directors.

KippsDeSanto & Co. served as the sell-side advisor to LeapPoint. DLA Piper served as legal counsel and Cherry Bekaert as accounting advisor to Renovus.

About LeapPoint

LeapPoint Consulting is changing the way companies connect work, technology, and talent to solve big business challenges and drive successful outcomes. Established by Big 4 alumni who sought more flexibility and agility in meeting clients’ most critical business needs, LeapPoint is committed to making life and experiences fundamentally better for employees, customers and those they serve. As the go-to Adobe and Adobe Workfront partner in financial services, healthcare and retail, LeapPoint’s break-through Connected Work™ services are the essential framework for the Future of Work. For more information, visit www.leappoint.com. To learn more about LeapPoint and its Connected Work services, download LeapPoint’s Connected Work ebook.

About Renovus

Founded in 2010, Renovus Capital Partners is a private equity firm specializing in the Knowledge and Talent industries. Renovus, based in the Philadelphia area, manages $1 Billion across several investment vehicles. The firm’s current portfolio includes over 20 U.S. based businesses specializing in educational technology and content, higher education, corporate learning and development, healthcare services and technology services. Renovus typically partners with founder led businesses, leveraging its industry expertise and access to debt and equity capital to make operational improvements, pursue tuck-in acquisitions and oversee strategic growth initiatives. More information can be found at www.renovuscapital.com

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KippsDeSanto & Co. advises Occam’s Razor Technologies, LLC on its sale to Avantus Federal, a NewSpring Holding Company

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KippsDeSanto & Co. advises Occam’s Razor Technologies, LLC on its sale to Avantus Federal, a NewSpring Holding Company

KippsDeSanto & Co. is pleased to announce the sale of its client, Occam’s Razor Technologies, LLC, (“ORT” or the “Company”), to Avantus Federal, LLC, (“Avantus”) a NewSpring Holding Company.

Headquartered in Reston, VA, ORT is a leading provider of cyber solutions focused on cyber tool development and assessment in support of classified Intelligence Community (“IC”) and Department of Defense (“DoD”) missions.  The Company provides the full lifecycle of cyber tools and products from development through deployment.

The ORT acquisition deepens Avantus’ position with national security customers and augments its cyber offerings. These capabilities and solutions will accelerate the combined entities position as an industry leader, providing these cyber solutions across a growth and broader set of Federal Government customers.

We believe this transaction demonstrates several key trends in the government services mergers and acquisitions (“M&A”) market:

  • Strong demand for Company-developed intellectual property and advanced engineering and cyber solutions capabilities
  • Unique, franchise positions within key Federal customers at the forefront of priority government missions
  • Financial sponsors continued appetite to deploy capital through new platform investments and bolt-on acquisitions to existing portfolio companies, particularly for those assets with long-term contracts, strong management teams, and differentiated capabilities
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

Avantus Federal Announces Acquisition of Occam’s Razor Technologies, LLC 

McLean, VA – August 23, 2021 Avantus Federal, a NewSpring Holding Company and a leader in mission-focused, service-driven solutions, has acquired Occam’s Razor Technologies, LLC., a Reston, VA based leading provider of cyber solutions focused on cyber tool development and assessment in support of high-value Defense, Intelligence and National Security mission requirements. This acquisition further enhances Avantus’ cyber operations and solutions platform through differentiated technology and delivery capacity at scale, bringing an additional suite of capabilities to the company’s extensive base of federal government customers.

Occam’s Razor Technologies (“ORT”), founded in 2011, primarily supports the Intelligence and Defense communities and develops and delivers a robust portfolio of technologies, cyber tools, and integrated software solutions to some of the nation’s cutting-edge cyber challenges. The company has a proven ability to win large-scale, prime contracts leveraging its deep technical and subject matter expertise. Similar to the mission and values of Avantus, ORT’s business model excels by attracting, retaining and investing in world-class, highly cleared talent who thrive in partnering with clients to solve their toughest National Security challenges.

“For more than 10 years, Occam’s Razor Technologies has built a company committed to developing innovative solutions for its clients. We work with extreme focus to partner and merge with companies like ORT, who deliver innovation creatively to the Nation’s highest-impact missions,” said Andy Maner, Chief Executive Officer at Avantus. “ORT’s mix of elite cyber and software capabilities and its dedication to employee growth are just two of the many reasons this company is a great fit with Avantus’ capabilities and offerings and will fuel combined growth at our shared and new customers.”

Michael Nordfelt, founder and President of Occam’s Razor Technologies, added, “We are very excited to join forces with Avantus. We will continue to provide highly differentiated cyber and software offerings to our government clients and grow with the Avantus enterprise. Our organizations collectively focus on growth, mission-focused values, investing in employees and committing to diversity and inclusion. Tapping into both of our organizations’ expertise will allow us to empower our eminence and achieve mission success.”

ORT joins the Avantus Enterprise built on mission impact and technology enablement. Its cyber expertise and technologies will infuse new capabilities into Avantus’ growing capabilities and service offerings.

KippsDeSanto and Covington & Burling LLP served as advisor and legal counsel, respectively to Occam’s Razor Technologies. Blank Rome LLP served as counsel to Avantus.

About Avantus Federal

Avantus Federal, a NewSpring Holdings company, is a mission-focused services and solutions company headquartered in McLean, VA. Drawing upon its heritage companies’ histories of consistent growth and high performance in the federal services market, Avantus ensures eminence is earned, sustained and grown.

Avantus’ services and solutions are designed, tailored, and executed based on our long history of helping our Homeland Security, Defense, Intelligence, and Federal Civilian customers solve complex challenges. Visit Avantus Federal at www.avantusfederal.com.

About NewSpring Holdings

NewSpring Holdings, the dedicated, diversified holding company within NewSpring with a strategy focused on control buyouts and platform builds, brings a wealth of knowledge, experience, and resources to take profitable, growing companies to the next level through acquisitions and proven organic methodologies. Founded in 1999, NewSpring partners with the innovators, makers, and operators of high-performing companies in dynamic industries to catalyze new growth and seize compelling opportunities. The Firm manages over $2.0 billion across four distinct strategies covering the spectrum from growth equity and control buyouts to mezzanine debt. Partnering with management teams to help develop their businesses into market leaders, NewSpring identifies opportunities and builds relationships using its network of industry leaders and influencers across a wide array of operational areas and industries. Visit NewSpring at www.newspringcapital.com.

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KippsDeSanto & Co. Advised Fenix Group, Inc. on its investment from Enlightenment Capital

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KippsDeSanto & Co. Advised Fenix Group, Inc. on its investment from Enlightenment Capital

KippsDeSanto & Co. is pleased to announce that our client, Fenix Group, Inc. (“Fenix” or the “Company”) has received a strategic investment from Enlightenment Capital.

Headquartered in Chantilly, Virginia, Fenix provides innovative, band-agile closed loop carrier grade (4G / LTE and 5G) networks supporting battlefield communication and sensor ecosystems with advanced sensor endpoints for the defense, intelligence, and disaster response sectors. Through specialized network communication services, unmanned systems integration, and patented products, Fenix increases warfighter lethality while reducing risk, complexity, and costs over legacy systems. The Company is aligned with several key government programs and customers across the U.S. Department of Defense and Intelligence Community.

Fenix has developed its technology solutions with a focus on edge networks and integrated systems, which it refers to as the “Battlefield of Things®” sensor ecosystem. Through this ecosystem, it connects a variety of battlefield sensors to include UAVs, UGVs, Unattended Ground Sensors (“UGS”), and COTS end-user devices. By leveraging 4G / LTE and 5G combined with Mobile Ad Hoc Network (“MANET”) communication technologies and edge computing, Fenix enhances situational awareness and is able to pass increased amounts of data and information at the tactical edge in both domestic and deployed environments. The Company is also at the forefront of 5G integration for military use providing infrastructure and mobile platforms equipped with 5G functionality for military installations across the U.S. through recently awarded subcontracts with several key partners.

The investment from Enlightenment Capital will support Fenix’s growth strategy by providing financial resources and strategic / M&A support as it looks to build on its success to date and expand its facility footprints in multiple states and refine the Company’s engineering process and manufacturing capacity to scale with demand.

We believe this transaction demonstrates several key trends for defense technology investing:

  • Strong demand for innovative, field-proven tactical communication and sensor ecosystem capabilities supporting mission-critical defense and intelligence programs
  • Continued emphasis on R&D and strategic partnerships as a means for consistent and steady product development and evolution
  • Investors continue to seek opportunities to deploy capital in the defense technology market for coveted assets with strategic footprints and differentiated solutions in key high growth segments, such as 5G and communications at the tactical edge

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

Enlightenment Capital Invests in Fenix Group

Chevy Chase, Maryland – June 21, 2021:  Enlightenment Capital, an Aerospace, Defense, Government & Technology (ADG&T) focused investment firm based in the Washington, DC area, announced it has made a strategic investment in Fenix Group. Fenix is a provider of integrated systems, battlefield edge networks, and Low Probability of Intercept / Low Probability of Detection (LPI / LPD) communications solutions in support of the U.S. Department of Defense (DoD), special operations, and intelligence communities. The investment will support Fenix’s growth strategy by providing financial resources and strategic / M&A support, as it looks to build on its success to date.

Founded in 2016 and based in Chantilly, VA, Fenix provides equipment and services for private broadband networks (e.g., 5G / LTE) and handheld communication devices, supporting battlefield communication and sensor ecosystems with endpoints for the defense, intelligence, and disaster response sectors. The Company was recently awarded subcontracts with several key partners to provide military grade mobile products and infrastructure with 5G functionality for military bases throughout the U.S. In 2020, Fenix was named a Government Contractor of the Year by the Small and Emerging Contractor Advisory Forum (SECAF).

“Fenix supports some of the most cutting-edge electronics solutions being implemented on the tactical edge of the DoD and intelligence communities,” said Jason Rigoli, Partner at Enlightenment Capital. “The solutions span 5G, LTE, and other mobile communications technologies from domestic to austere environments. We are excited to invest in their vision of pushing the boundaries of interconnected defense and intelligence systems in use around the world.”

“We are very excited to partner with Enlightenment Capital as we begin the next chapter in our growth strategy. Enlightenment’s experience and deep industry expertise is exactly what we were looking for in a strategic investor. This partnership greatly enhances our ability to drive growth through expansion of our facility footprints in multiple states and allows us to refine our engineering process and manufacturing capacity to scale with demand,” said Dave Peterson, Founder & CEO.

About Fenix Group

Founded in 2016, Fenix Group provides technology solutions with a focus on edge networks and integrated systems, which it refers to as the “Battlefield of Things®” sensor ecosystem. Through this ecosystem, it connects a variety of battlefield sensors to include UAVs, UGVs, Unattended Ground Sensors (UGS), and COTS end-user devices. By leveraging 4G / LTE & 5G combined with Mobile Ad Hoc Network (MANET) communications technologies and edge computing, Fenix enhances situational awareness as well as data and information sharing at the tactical edge in both domestic and deployed environments. For more information, visit www.fenixgroup.io.

About Enlightenment Capital

Enlightenment Capital, a Washington, DC area based private investment firm, provides flexible capital and strategic support to middle market companies in the Aerospace, Defense, Government & Technology (ADG&T) sector. The firm partners with businesses that provide vital services, protect critical

infrastructure, innovate cyber and data solutions, enhance decision making capabilities, engineer aerospace systems, safeguard national security, and endeavor to meet the challenges of today and tomorrow. For more information, visit www.enlightenment-cap.com

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

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KippsDeSanto & Co., an investment banking firm focused on serving growth-oriented Aerospace & Defense (“A&D”) and Government Technology Services (“GTS”) companies, is pleased to share its DealView – the “Top 10 M&A Deals of the Quarter” – for the quarter ended June 30, 2021.

 

 

Of the above transactions, the following were especially noteworthy:

The A&D deal of the quarter is KKR & Co. L.P.’s (“KKR”) pending $4.5 billion acquisition of Atlantic Aviation FBO Holdings, LLC (“Atlantic Aviation” or the “Company”), a subsidiary of Macquarie Infrastructure Corporation (“MIC”). MIC anticipates $3.3 billion of the purchase price to be available for distribution post-closing following payments related to MIC’s reorganization into Macquarie Infrastructure Holdings, LLC (“MIH”), which was approved by MIC shareholders on May 6, 2021. Headquartered in Plano, TX, Atlantic Aviation operates one of the largest networks of fixed base operations (“FBOs”) in the U.S., providing a full suite of critical services, such as fuel and hangarage to owners and operators of private-jet aircraft. The Company operates at 69 airport locations in some of the most popular business and recreational destinations around the U.S. The investment from KKR positions Atlantic Aviation for continued growth as a standalone company led by its existing management team. The transaction comes on the heels of Blackstone Group’s, Cascade Investment’s, and Global Infrastructure Partners’ (“GIP”) $4.7 billion acquisition of Signature Aviation, the world’s largest FBO chain, and further represents the renewed interest in the commercial aerospace market displayed by private equity firms as the global economy continues its recovery from the COVID-19 pandemic. The transaction is expected to close in the fourth quarter of 2021, subject to customary regulatory approvals and approval from MIC shareholders.

The GTS deal of the quarter is the pending acquisition of Novetta Solutions, LLC (“Novetta”), a portfolio company of The Carlyle Group, by Accenture Federal Services (“AFS”), a wholly owned subsidiary of Accenture (NYSE: ACN). Based in McLean, VA, Novetta provides analytic software solutions that detect potential threats, and protect high-value networks for government and commercial enterprises worldwide. The acquisition of Novetta complements AFS’ presence in the national security sector and bolsters its next-generation capability set in software development, data science, artificial intelligence, machine learning, cyber, and cloud. The combined organization will strive to improve the digital landscape of the federal government through a true DevSecOps approach. Terms of the transaction have not been publicly disclosed. Under The Carlyle Group’s 100% ownership, Novetta acquired Berico Technologies, LLC in November 2018 and most recently WaveStrike, LLC in June of 2020, both of which helped the platform scale and expand its capability set. This acquisition demonstrates a continued interest by public companies to acquire targets providing cutting edge technology solutions to high-profile Intelligence Community and Department of Defense customers. This transaction is one of several high-profile deals consummated in the quarter highlighting the robust current M&A environment with total GTS deal volume approaching 100 through year-to-date 2021.

KippsDeSanto & Co is an investment banking firm focused on serving growth-oriented Aerospace / Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity and industry experience. We help market leaders realize their full strategic value. Having advised on over 100 industry transactions, KippsDeSanto is recognized for our analytical rigor, market insight, and broad industry relationships. There’s no substitute for experience. For more information, visit www.kippsdesanto.com.

Securities and investment banking products and services are offered through KippsDeSanto & Co., a non-banking subsidiary of Capital One, N.A., a wholly owned subsidiary of Capital One Financial Corporation. KippsDeSanto is a member of FINRA and SIPC. Products or services are Not FDIC Insured, Not Bank Guaranteed, May Lose Value, Not a Deposit, and Not Insured By Any Federal Governmental Agency.

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KippsDeSanto & Co. advises NSI-MI Technologies on its sale to AMETEK, Inc.

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KippsDeSanto & Co. advises NSI-MI Technologies on its sale to AMETEK, Inc.

KippsDeSanto & Co. is pleased to announce the sale of its client, NSI-MI Technologies (“NSI-MI” or the “Company”), to AMETEK, Inc. (“AMETEK”).

Headquartered in Suwanee, GA, NSI-MI is a leading provider of microwave measurement systems and antenna and radio frequency (“RF”) testing and instrumentation solutions.

The Company’s array of offerings enables it to provide testing solutions to its customers across several industries, including aerospace, defense, space, communication, automotive, and research. NSI-MI’s advanced engineering capabilities allow it to customize and optimize test systems and continue to provide testing and support beyond the initial system delivery.

The transaction complements AMETEK’s growth model, which integrates operational excellence, new product development, global and market expansion, and strategic acquisitions with a disciplined focus on cash generation and capital deployment. NSI-MI will join as part of AMETEK’s Electronic Instruments Group (EIG), a leader in a leader in advanced analytical, monitoring, testing, calibrating and display instruments.

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

  • Buyers are looking for proprietary, highly engineered, and differentiated solutions
  • Continued demand for innovative companies that are poised to capitalize on key market growth drivers (i.e., expansion of the instrumentation market, 5G technology, and prioritization of turnkey architecture)
  • Continued emphasis on R&D is critical to maintain and modernize key products, as well as develop next generation technology

 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

AMETEK Acquires NSI-MI Technologies

BERWYN, PA, May 4, 2021 – AMETEK, Inc. (NYSE: AME) today announced that it has acquired NSI-MI Technologies, a leading provider of radio frequency and microwave test and measurement solutions and services. NSI-MI was acquired for $230 million and has annual sales of approximately $90 million.

NSI-MI’s expertise in advanced radio frequency and microwave technologies allows them to provide complete test and measurement systems for niche applications across the aerospace, defense, automotive, wireless communications, and research markets. The company has a diverse portfolio of testing instrumentation, components and software, while also providing customers with turnkey anechoic and simulation chambers, and a broad set of aftermarket services.

“We are pleased to welcome NSI-MI to AMETEK,” comments David A. Zapico, AMETEK Chairman and Chief Executive Officer. “NSI-MI is an outstanding acquisition and nicely complements our existing Electromagnetic Compatibility test and measurement businesses. NSI-MI’s test and measurement solutions are uniquely positioned to support the continued development of advanced RF and microwave technologies for critical applications in wireless communications, satellite systems, autonomous vehicles, and defense systems.”

NSI-MI is headquartered in Suwanee, Georgia with additional operations in Torrance, California and Sheffield, U.K. NSI-MI joins AMETEK as part of its Electronic Instruments Group (EIG) – a leader in advanced analytical, monitoring, testing, calibrating and display instrumentation.

Corporate Profile

AMETEK is a leading global manufacturer of electronic instruments and electromechanical devices with annual sales in 2020 of more than $4.5 billion. The AMETEK Growth Model integrates the Four Growth Strategies – Operational Excellence, New Product Development, Global and Market Expansion, and Strategic Acquisitions – with a disciplined focus on cash generation and capital deployment. AMETEK’s objective is double-digit percentage growth in earnings per share over the business cycle and a superior return on total capital. The common stock of AMETEK is a component of the S&P 500.