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

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

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

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

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

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

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

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

Press Release

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

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

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

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

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

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

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

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

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

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

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

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

About KippsDeSanto & Co.

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

Press Release

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

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

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

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

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

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

About VT Group

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

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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, Government Services and Technology companies, would like to share its thoughts on the “Top 10 M&A Deals of the Quarter” for the period ended September 30, 2019.  The following table is our take on the most notable announced M&A transactions — not only based on size, but also on strategic importance and / or impact.

Of the above transactions, the following were especially noteworthy:

The aerospace and defense deal of the quarter is Advent International’s pending acquisition of Cobham plc (LSE:COB).  Cobham designs and manufactures equipment, specialized systems, and components for the aerospace and defense industries.  The estimated $5.16 billion transaction was announced on July 25th and required shareholder and government approval after the initial announcement.  Advent’s offer of $2.06 per share represents a 50 percent premium to the three-month average stock price.  The deal required 75 percent shareholder approval; over 90 percent of shareholders voted in favor of the transaction on September 16th, even after pushback from the Company’s largest shareholder.  Cobham’s board of directors unanimously supported and recommended the deal.  The acquisition fits Advent’s transaction history in the British electronics industry with its previous acquisition of Laird for $1.65 billion in 2018.  The deal still faces political and regulatory scrutiny after the British government served an intervention notice on national-security grounds.  The British government utilized a similar strategy for Melrose Industries plc’s acquisition of GKN plc in 2018, forcing Melrose into assurances that it would not divest key portions of GKN’s aerospace division.  The deal is expected to close by the end of 2019.

The government technology solutions deal of the quarter is Guidehouse’s acquisition of the global management consulting firm Navigant Consulting, Inc. (Nasdaq: NCI).  Navigant is a specialized professional services firm serving clients primarily in the healthcare, energy and financial services sectors. Guidehouse, a Veritas portfolio company, is a leading provider of management consulting and strategic advisory services to government clients. The combination of these two market leaders in consulting brings together complementary service offerings and deep industry expertise in both the commercial and public sectors, with a focus on supporting clients in the healthcare, financial services, energy, national security and aerospace and defense industries. Guidehouse CEO Scott McIntyre, who will lead the combined company, highlighted the forward-leaning nature of this combination, stating that “the acquisition of Navigant is the next step in our journey to create the next generation global consultancy.” The acquisition is the first for Guidehouse since its formation in May 2018 through PwC’s divestiture of its U.S. Public Sector Business to Veritas Capital. This deal reflects the broader trend of sponsors expanding their platforms’ offerings and customer base through bolt-on acquisitions of complementary targets, as seen this quarter by the sale of Connexta to Octo (Arlington Capital Partners platform) and AceInfo Solution’s acquisition by Dovel Technologies (Macquarie Capital platform).

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

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

KippsDeSanto & Co. advises CWPS on its Sale to Red River

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KippsDeSanto & Co. advises CWPS on its Sale to Red River

KippsDeSanto & Co. is pleased to announce the sale of its client, Computer Word Processing Systems, Inc. (“CWPS” or the “Company”), to Red River Technology, LLC (“Red River”).

Headquartered in Chantilly, VA, CWPS is a leading technology solutions provider specializing in managed services ranging from complex network, collaboration, data center, cloud management and security through Tier 1 service desk capabilities.  The Company was a first-mover toward building an expertise in managed cloud services, shifting over time from unified communications to services in major cloud platforms including Microsoft Azure, Office 365, and Amazon Web Services (“AWS”).

This acquisition strengthens Red River’s position as a cloud services provider, expands and enhances its geographic managed services portfolio footprint within the Mid-Atlantic and Southeast regions, and provides Red River an additional 24×7 Network Operations Center (“NOC”).

We believe this investment demonstrates several key trends in the managed services market:

  • Strong demand for technology-driven, next-generation managed and cloud service companies;
  • Continued focus on high-growth oriented firms with proven scale and past performance, and sustainable, recurring revenue and profitability; and
  • Significant value attributed to deeply-embedded customer relationships and market know-how

 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.

Red River Acquires CWPS

The Acquisition Adds Depth, Breadth and Maturity to Red River’s Managed Services Portfolio

September 06, 2019 12:20 PM Eastern Daylight Time

CLAREMONT, N.H. & WASHINGTON–(BUSINESS WIRE)–Red River, a technology transformation company, announced today that it has acquired Washington D.C.-based CWPS. The acquisition adds depth, breadth and maturity to Red River’s managed services portfolio and infuses the company with more than 150 talented, innovative people. The acquisition also enhances Red River’s geographic footprint within the Mid-Atlantic and Southeast regions and strengthens the company’s position as a leading cloud services provider by adding scale and scope in major cloud environments including Microsoft Azure, Office 365 and AWS.

CWPS is a technology solutions provider specializing in managed services ranging from complex network, collaboration, data center, cloud management and security through Tier 1 service desk. This expertise enhances Red River’s ability to better serve its customers across the full spectrum of technology – from designing, selling and integrating technology infrastructure to full-lifecycle services, application development and support.

“CWPS has successfully navigated every growth cycle in our business without having to take outside investment,” said Jason Waldrop, CEO of CWPS. “To accelerate our future growth, CWPS needed to find a partner with substance. By joining with Red River and leveraging its scale, resources and mature operating framework, we can provide greater opportunities for our employees and have greater impact on our customers’ technology and business outcomes.”

Red River now has two 24 x7 Network Operations Centers (NOC) and a geographic footprint that features major office locations in New Hampshire, Virginia, Texas and California with engineering and sales resources in over 25 states. CWPS will fold into Red River’s Managed Services organization with Jason Waldrop serving as the division’s President.

About Red River

Red River brings together the ideal combination of talent, partners and products to disrupt the status quo in technology and drive success for business and government in ways previously unattainable. Red River serves organizations well beyond traditional technology integration, bringing more than 20 years of experience and mission-critical expertise in security, networking, analytics, collaboration, mobility and cloud solutions. Learn more at redriver.com.

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KippsDeSanto & Co. advises AceInfo Solutions on its sale to Dovel Technologies, a portfolio company of Macquarie Capital

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KippsDeSanto & Co. advises AceInfo Solutions on its sale to Dovel Technologies, a portfolio company of Macquarie Capital

KippsDeSanto & Co. is pleased to announce the sale of its client, AceInfo Solutions (“AceInfo” or the “Company”), to Dovel Technologies (“Dovel”), a portfolio company of Macquarie Capital.

Headquartered in Reston, VA, AceInfo has established itself as a preeminent provider of NextGen IT solutions addressing the IT transformation and modernization needs across a strong base of Federal civilian and Department of Defense (“DoD”) customers.

Leveraging its differentiated portfolio of solutions, including Application Services, Systems Modernization, Agile Development, DevSecOps, Cloud Services, Cyber Security, and Managed Services, AceInfo delivers emerging technology to advance its customers’ critical modernization missions and has established decades-long relationships with the U.S. Department of Agriculture (“USDA”), Census Bureau, Department of Homeland Security (“DHS”), Department of Justice (“DoJ”) and NOAA, among many other Federal customers.

As Dovel’s first acquisition since being acquired by Macquarie Capital, AceInfo’s position across several strategic Federal agencies will augment Dovel’s customer base and further accelerate the combined market position through AceInfo’s contract vehicle portfolio, including Alliant 2, One Acquisition Solution for Integrated Services (“OASIS”), Responsive Strategic Sourcing for Services (“RS3”), the Defense Information System Agency’s (“DISA”) Encore III, and others.

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

  • As the requirements of government customers continue to evolve, firms that offer forward leaning, NextGen solutions to include cloud and agile remain highly attractive acquisition candidates
  • Strong demand for access to prime, full and open contract vehicles as a conduit to drive growth
  • Private equity continues to invest and build the middle market through buy and build strategies

 About KippsDeSanto & Co.

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

Press Release – September 04, 2019

Dovel Technologies Acquires AceInfo Solutions

McLean, VA, September 4, 2019 – Dovel Technologies, a leading expert to federal agencies that blends deep domain expertise and advanced technologies in the health IT, life sciences, and grants management markets, today announced the acquisition of AceInfo Solutions. The addition of AceInfo will help Dovel diversify its client base and expand its market capabilities. It will rapidly advance Dovel’s portfolio of solutions and services and open up new opportunities for employees to grow their talents and experiences within the combined company.

AceInfo is a trusted IT partner to the federal government with core competencies in Infrastructure & Data Center Support, Agile Software Development, Systems Modernization, DevSecOps, Cloud Engineering, and Data Analytics and holds a number of best-in-class government-wide contracts. Additionally, its technology Centers of Excellence bring emerging technologies and solutions to their customer environments such as Serverless Architecture, Artificial Intelligence, and Machine Learning.

“AceInfo’s and Dovel’s deep technical capabilities and a shared commitment to our employees and customers are an ideal match”, said Jay Challa, Chairman and CEO, AceInfo. “Our cultures are both entrepreneurially focused and dedicated to delivering quality solutions. We are proud to bring our collective capabilities to make a positive impact across critical federal government projects.”

Dovel helps advance federal agency missions to bring about meaningful change to people around the world. The company has a long, proven history of integrating emerging technologies with domain expertise, mission requirements, and customer needs to produce lasting and highly innovative solutions to customers.

“The addition of AceInfo enables us to continue the aggressive pursuit of our long-term growth strategy of market expansion and competitive positioning in the mid-tier market,” said Paul Leslie, CEO of Dovel. “AceInfo adds complementary capabilities, a highly-skilled team of employees, and a diverse customer base that will help us advance our work in supporting the integration of emerging technologies with complex systems to manage data and information for more rapid decision making.”

Together, this newly formed mid-tier company will serve customers including government agencies such as the Department of Health and Human Services, the Department of Defense, Department of Agriculture, Department of Homeland Security, Department of Justice, and Department of Commerce.

“AceInfo has exceptional large program past performance, as well as contract vehicles that will open doors, expanding our client offerings” said Dovel President and COO, Damon Griggs. “I am inspired by this opportunity to broaden our impact and very much look forward to working with the AceInfo team to use our joint capabilities to drive organic growth.”

Combining AceInfo’s capabilities and services with Dovel’s deep technology and market knowledge allows Dovel to now offer the expertise of more than 2,200 technologists, scientists, and support staff to accelerate modernization efforts across the federal government sector customer base. The AceInfo transaction enhances Dovel’s heavy presence in the Washington, DC metropolitan area with offices now in McLean and Reston, Virginia as well as Rockville, Maryland. The combined company also has offices in other locations including Fort Collins, Colorado and Raytown, Missouri.

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

About Dovel Technologies

Dovel Technologies blends deep domain expertise with advanced technologies to accelerate solutions that best fit the needs of our customers. We apply deep subject matter experience in health IT, life sciences, and grants management to drive innovation and expand customer capabilities. We harness the power of emerging technologies to integrate complex systems and manage information, allowing for rapid decision-making in data-rich environments. In May 2019, Dovel received a significant capital investment from Macquarie Capital, the corporate advisory, capital markets, and principal investment arm of Macquarie Group. For more information visit www.doveltech.com

About AceInfo Solutions

AceInfo Solutions, Inc. is a leading Federal contractor with a focused vision: empower our clients, challenge our employees, and grow our business. Deeply committed to ensuring quality and customer satisfaction, the Capability Maturity Model Integration (CMMI) Level 3 maturity appraised company helps agencies transform and strengthen their processes, operations, infrastructures, and security practices to help them further their critical missions. For more information visit www.aceinfosolutions.com

 

KippsDeSanto & Co. Acquired By Capital One

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KippsDeSanto & Co. Acquired By Capital One

KippsDeSanto & Co. has been acquired by Capital One.

KippsDeSanto is a wholly-owned subsidiary of Capital One and will continue to operate under the KippsDeSanto brand. Our 30 professionals are excited to support Capital One’s thrust into middle market M&A. Joining Capital One is a natural next step in the KippsDeSanto growth plan. Beyond the M&A advice we currently offer, our clients will now have access to additional solutions offered by Capital One.

“Capital One and KippsDeSanto have a shared goal of providing clients with trusted advice and counsel enabled by deep industry expertise and a seamless client experience,” said Steve Tulip, Head of Capital Markets, Capital One Commercial Banking. “By bringing our teams together, we’ll be able to add scale and expertise to our growing M&A advisory group which will benefit clients in a wide variety of industries.”

With Capital One, a top 10 U.S. Commercial Bank, we found an innovative, technology savvy financial institution with a similar culture and business values. Moreover, we see enormous synergy and growth potential with their capital markets products, expanded private equity and corporate relationships and industry knowledge in aerospace and defense and other key verticals.

About KippsDeSanto & Co.

KippsDeSanto & Co. is a leading investment banking firm focused on serving leading, 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.

About Capital One

Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, N.A., and Capital One Bank (USA), N.A., had $254.5 billion in deposits and $373.6 billion in total assets as of June 30, 2019. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, N.A. has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia,

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KippsDeSanto & Co. Advises McNally Industries, LLC, a portfolio company of Gardner Standard LLC, on its sale to Susquehanna Private Capital, LLC

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KippsDeSanto & Co. Advises McNally Industries, LLC, a portfolio company of Gardner Standard LLC, on its sale to Susquehanna Private Capital, LLC

KippsDeSanto & Co. is pleased to announce the sale of McNally Industries, LLC (“McNally” or the “Company”), a portfolio company of Gardner Standard LLC, to Susquehanna Private Capital, LLC.

Headquartered in Grantsburg, WI, McNally is a leading provider of advanced design engineering, complex test and assembly, and precision machining and manufacturing for mission-critical applications, primarily supporting both new and legacy platforms for the aerospace & defense and midstream oil & gas markets.  The Company’s full-service offerings range from initial product design and manufacturing to final testing and after-market support.  Deep engineering capabilities, including reverse engineering and technical data package development, have created significant competitive advantages and high barriers to entry.  Additionally, this expertise has enabled McNally to establish sole-source / single-source positioning on various highly-visible and well-funded Programs of Record (“PoR”) and to develop proprietary products.  McNally has an established history supporting various Department of Defense (“DoD”) customers with missions across land, air, and sea.  Supported programs include the Bradley Fighting Vehicle; Apache, Blackhawk, and Chinook helicopters; and DDG-51 destroyers.

Well-positioned in the growing defense and energy end markets, McNally maintains strong relationships with a strategically diversified portfolio of government end users, key system integrators and defense primes, as well as commercial oil & gas customers.  Continued investments in new machinery and equipment coupled with an emphasis on cultivating engineering talent with relevant industry certifications, educational backgrounds, and requisite security clearances has allowed McNally to succeed and drive continued growth.

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

  • Demand for companies with entrenched and defensible positions on PoRs and key enduring programs which provide significant revenue visibility and backlog;
  • Significant value placed on companies with single / sole-source status given high barriers to entry created by differentiated capabilities portfolios and proprietary solutions;
  • Interest in customer footprint diversified across government users, defense primes, and commercial players;
  • Private equity firms remain active; buyers look to acquire new platforms in well-funded and defensible 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.

Press Release

MCNALLY INDUSTRIES, LLC PARTNERS WITH SUSQUEHANNA PRIVATE CAPITAL, LLC

BALA CYNWYD, PA – (September 9, 2019) — Susquehanna Private Capital, LLC (“SPC”), a middle market investment firm and member of the Susquehanna International Group of Companies (“SIG”), is pleased to announce its investment in McNally Industries, LLC (“McNally”), a precision systems manufacturer to defense and industrial markets based in Grantsburg, Wisconsin.

McNally has an established history supporting various U.S. Department of Defense customers with missions across land, air, and sea. Supported programs include Ground Combat Vehicles, including Bradley, Paladin and the Army’s new Armored Multi-Purpose Vehicle, Army Rotary Wing Aircraft, including Blackhawk, Apache and Chinook, the Navy’s fleet of DDG-51 destroyers as well as the Army’s 120mm, 81mm and 60mm Mortar Weapons Systems.

“We are excited to partner with McNally’s management team during the next phase of the Company’s growth” said Kyle Squillario, Director at SPC. “The Company’s impressive manufacturing operations coupled with its advanced engineering and design capabilities serve as clear differentiators at a time when the industry is demanding more from its suppliers.”

McNally recently built a new 17,500 square foot assembly and test facility at its Grantsburg, Wisconsin campus to better accommodate the significant growth the Company is experiencing. “The McNally team is very excited to partner with SPC and the strength they bring to continue advancing the Company’s growth,” said Jim Segelstrom, CEO of McNally.

As part of the transaction, SPC has already made significant capital investments in the latest automated manufacturing technology so the Company can better meet increased customer demand for McNally’s products and services. “We believe McNally’s focus on legacy systems and aftermarket components to the defense industry align well with the U.S. Department of Defense’s stated goals and objectives” said Leo Helmers, Co-Founder and Group Head of SPC. “We look forward to partnering with management and investing in the business to enhance the Company’s capabilities, market position, and quality of service.”

KippsDeSanto & Co. served as the financial advisor to Gardner Standard. As part of the transaction, Gardner Standard will retain a minority position in McNally.

About McNally Industries

Founded in 1942 and headquartered in Grantsburg, Wisconsin, McNally provides advanced design engineering, complex test and assembly, and precision machining and manufacturing for mission-critical applications, primarily supporting both new and legacy platforms for the aerospace & defense and midstream oil & gas markets. The Company’s full-service offerings range from initial product design and manufacturing to final testing and aftermarket support, including reverse engineering and technical data package development. The Company works with leading blue-chip clients that serve the U.S. Department of Defense and midstream oil & gas end markets. For more information, please visit www.mcnally-industries.com.

About Susquehanna Private Capital

SPC is an affiliate of Susquehanna International Group, LLP (“SIG”), one of the world’s largest privately-held financial services firms. SPC makes majority and minority investments in domestic, middle market companies across a variety of industries, including: aerospace, defense & government, business services, healthcare, and industrials. The firm is backed by a unique and patient capital base that gives management teams the freedom and flexibility to pursue business plans that maximize long-term value creation. For more information, please visit www.spcllc.com.

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KippsDeSanto & Co. advises Altamira Technologies Corporation on its Sale to a ClearSky-led Investor Group

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KippsDeSanto & Co. advises Altamira Technologies Corporation on its Sale to a ClearSky-led Investor Group

KippsDeSanto & Co. is pleased to announce the sale of its client, Altamira Technologies Corporation (“Altamira” or the “Company”), a portfolio company of Columbia Capital and Razor’s Edge Ventures, to a ClearSky-led investor group.

Headquartered in McLean, VA, Altamira is a leading provider of technology solutions to the defense and intelligence communities, with considerable domain expertise in Space Superiority, Cybersecurity, and Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (“C4ISR”).  Altamira partners with emerging and strategic commercial technology companies to combine innovations in data analytics, such as artificial intelligence (“AI”) and machine learning (“ML”), software development, multi-intelligence analysis, and cybersecurity with deep mission knowledge.  The Company’s mission-critical solutions provide its customers strategic and tactical advantage over adversaries in the space, cyberspace, and battlespace domains to enhance the overall U.S. national security posture.

Additional investors in the ClearSky-led investor group include McNally Capital and Nio Advisors.

We believe this investment demonstrates several key trends in the defense and intelligence M&A market:

  • Technology-driven, high-end solutions companies focused on Space and C4ISR programs continue to be key priority areas for buyers and investors
  • Buyers and investors continue to place significant value on companies with deeply-embedded defense and intelligence customer relationships, most especially those aligned with favorable budget forecasts
  • Private equity investors remain actively focused on purpose-built growth platforms with a proven track record of innovation and delivery at 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.

ClearSky-led Investor Consortium Acquires Altamira Technologies in National Security Play

July 24, 2019 10:56 AM Eastern Daylight Time

MCLEAN, Va.–(BUSINESS WIRE)–Altamira Technologies Corporation, a market leader in delivering innovative, mission-focused analytics and engineering solutions to the U.S. national security community, today announced that the company has been acquired by an investor group led by ClearSky. Altamira was formed to address the growing gap in mid-sized innovators that possess the ability to scale as well as the agility to adapt to a rapidly changing threat environment and technology landscape. The company has experienced a 20%+ CAGR over the past 4 years and its multi-billion dollar set of contract vehicles position it at the forefront of continued growth and expansion into the broader defense, intelligence and homeland security markets.

“We are very excited by the opportunity that this new partnership will provide to continue to drive strong organic growth, invest in innovative new solutions, as well as for strategic acquisitions,” said Altamira CEO, Ted Davies. “We have carefully constructed a unique platform built to scale and support core national defense and intelligence missions and are enthused that our investors share our vision for the future.”

In addition to ClearSky, other investors in the ClearSky-led consortium include McNally Capital and Nio Advisors. In connection with the transaction, ClearSky Managing Director Peter Kuper and ClearSky Chairman Joseph R. Wright, Jr. are joining Altamira’s board of directors, as is Ward McNally, Managing Partner at McNally Capital.

“Altamira has positioned itself well to continue to provide trusted, value-added, and critical mission-focused solutions as a key partner with its clients,” said ClearSky Chairman and incoming Altamira Chairman Joseph R. Wright, Jr. “We are pleased to support the strong management team and professionals at Altamira, and are excited by the opportunities for further business growth and innovation at Altamira.”

“We are excited to partner with Altamira, ClearSky and Nio Advisors on this transaction, which is in line with our commitment to partner with best-in-class management teams and investors,” said incoming Altamira director Ward McNally.

KippsDeSanto & Co. served as exclusive financial advisor and Cooley LLP served as legal advisor to Altamira in the transaction.

About Altamira

Altamira Technologies leverages its award-winning culture of excellence to deliver innovative solutions to the defense, intelligence, and homeland security communities. The company provides customers a mission advantage through full-spectrum advanced engineering, data analytics, and cyber operations services and solutions from research through development and into operations.

About ClearSky

ClearSky is a venture capital/growth equity firm that has been operating since 2012 with offices in Florida, New York, Boston and San Francisco. ClearSky is currently investing through two funds: ClearSky Power & Technology and ClearSky Security. ClearSky Power & Technology invests in innovative companies providing technology and services to enterprise customers, with a special focus on the power sector. ClearSky Security invests in companies that offer transformative security solutions, with a special focus on cybersecurity, industrial security and critical infrastructure security.

About McNally Capital

Formed by the McNally family, who owned and operated Rand McNally & Company, McNally Capital is dedicated to upholding a 140+ year legacy as a family-owned and operated company. Today, McNally Capital is focused exclusively on Direct Family Capital through Direct Investing. With an emphasis on partnership, we harness the financial, intellectual, and human capital of our family office ecosystem to build value for family office investors, management teams and operating companies. We maintain a private network of over 800 family offices with whom we collaborate to make and manage direct investments.

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KippsDeSanto & Co. Advises Data Works on its sale to E3 Federal Solutions/Sentinel, a NewSpring Holdings Company

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KippsDeSanto & Co. Advises Data Works on its sale to E3 Federal Solutions/Sentinel, a NewSpring Holdings Company

KippsDeSanto & Co. is pleased to announce the sale of Data Works, Inc. (“Data Works” or the “Company”) to E3 Federal Solutions | Sentinel (“E3/Sentinel”), a NewSpring Holdings Company.

Headquartered in Reston, VA, Data Works is a leading provider of mission analytics, big data, and rapid software development solutions to the Intelligence Community (“IC”).  The Company has established significant past performance with its intimate knowledge of the development of big data systems used to organize and analyze vast amounts of mission critical data.  Data Works delivers end-to-end enterprise data management solutions addressing the challenges of capturing, transforming, and delivering data to support Intelligence clients.

The combination of the two firms allows E3/Sentinel to expand its data engineering, advanced analytics,  and software development capabilities for all its federal government clients.  The acquisition of Data Works also brings dynamic intelligence customers that the combined entity can better support and service.  The combined entity consists of over 650 experienced and dedicated employees that provide solutions including: digital transformation and innovation, project and portfolio management, mission analytics and strategic advisory, and engineering and technical services.

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

  • Continued demand for high-growth IC-oriented firms with sustainable profitability;
  • Buyers and investors are increasingly focused on companies with strong past performance, customer relationships, unrestricted contracts, and near-term revenue visibility; and
  • Increasing M&A activity by private equity – via new platforms and add-ons to existing portfolio companies

About KippsDeSanto & Co.: KippsDeSanto & Co. is a  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 is no substitute for experience.  For more information, visit www.kippsdesanto.com.

Press Release

E3/Sentinel Announces Acquisition of Data Works, Inc.

August 1, 2019

McLean, VA – E3/Sentinel, a NewSpring Holdings company and a leader in mission-focused, service driven solutions, today announced it has acquired Data Works, Inc., a leading provider of mission analytics, big data, and rapid software development solutions to the Intelligence Community. With this acquisition E3/Sentinel will expand its data engineering, advanced analytics and software development capability, bringing more robust offerings to all its federal government customers. The acquisition is effective today, and the companies will combine business operations in the coming year.

Data Works, founded in 2006 with headquarters in Reston, Virginia, primarily supports the Intelligence Community and specializes in the development of big data systems used to organize and analyze vast amounts of mission critical data. Core to the organization, Data Works delivers end-to-end enterprise data management solutions addressing the challenges of capturing, transforming, and delivering data to all those who rely on it to fulfill their mission needs.

“We are excited to add Data Works and their exceptional people and capability to our platform,” said Andy Maner, Chief Executive Officer of E3/Sentinel. “They have a long and proud history of mission performance over the past 13 years supporting Intelligence clients. As our third acquisition in only the past few months, we are thrilled to continue to quickly add highly educated, technical and cleared professionals, contracts and capabilities to our fast-growing platform. All of our existing government clients and the primes that we support will also benefit from these unique analytics and data capabilities.”

Nick Powers, co-founder and President of Data Works, added, “We’re incredibly excited to join this mission-focused platform and extend our offerings to new customers in the Intelligence Community, Department of Homeland Security, and Department of Defense. Our amazing staff will benefit from new opportunities while our existing customers can leverage E3/Sentinel capabilities and infrastructure. The biggest factor to choosing E3/Sentinel as a partner was their experienced leadership team, focus on employees, and willingness to invest in growth. The corporate fit couldn’t be better, and I feel very fortunate for the opportunity.”

KippsDeSanto & Co. served as financial adviser, Caulkins & Bruce, PC served as legal counsel, and Peloton Strategies Group provided pre-sale strategic preparation to Data Works. Blank Rome served as counsel to E3/Sentinel.

About E3/Sentinel:

E3/Sentinel, a NewSpring Holdings company, is a mission-focused service driven solutions company headquartered in McLean, VA. We are a Washington Business Journal Best Places to Work awardee, a five-time Virginia Chamber of Commerce Fantastic 50 honoree, a six-time Inc. 5000 honoree, and a three-time Washington Technology FAST 50 honoree. Our enterprise program management and integrated service delivery practices are appraised at CMMI® Services maturity level 3, and our quality and environmental management systems are ISO 9001:2015 and 14001:2015 certified. E3/Sentinel has a long history of consistent growth and high performance in the federal services market. Our services and solutions are designed, tailored, and accomplished based on the combined domain experience both organizations bring from helping their Homeland Security, Defense, Intelligence, Border Security & Law Enforcement and Civilian customers solve complex challenges.

Our versatile team of 650 experienced and dedicated colleagues, backed by company leadership, allow us to provide a wide range of skills and expertise along with unmatched delivery excellence while maintaining an innovative and entrepreneurial culture that is laser-focused on mission imperatives and positive customer outcomes. The capabilities and services we provide, include: Digital Transformation and Innovation; Project & Portfolio Management; Mission Analytics and Strategic Advisory; and Engineering and Technical Services.

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 approximately $1.7 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.