blog hand shake image

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

/in , /by

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.

National Security Experience

/in , /by
blog shake image

KippsDeSanto & Co. advises Zenetex, LLC on its sale to Vectrus, Inc.

/in /by

KippsDeSanto & Co. advises Zenetex, LLC on its sale to Vectrus, Inc.

KippsDeSanto & Co. is pleased to announce the sale of its client, Zenetex, LLC (“Zenetex” or the “Company”), to Vectrus, Inc. (“Vectrus”) (NYSE: VEC).

Headquartered in Herndon, VA, Zenetex provides mission-focused lifecycle military aviation and advanced engineering and information technology (“IT”) solutions for military and national security clients.

Zenetex primarily supports Naval Air Systems Command (“NAVAIR”), various other U.S. Department of Defense (“DoD”) and Intelligence Community (“IC”) customers, and various foreign militaries, with embedded positions on enduring programs of record and various classified defense programs. The Company has extensive expertise spanning integrated logistics, advanced engineering, IT, research, development, test, and evaluation (“RDT&E”), security services, and full-spectrum maintenance, repair & overhaul (“MRO”) services. Since 2008, Zenetex has grown to ~2,000 employees with more than $200 million in annual revenue and $700 million of contracted backlog.

The Zenetex acquisition is expected to accelerate Vectrus’ converged infrastructure strategy through the addition of critical new capabilities, including high-end integrated logistics and MRO support services. The transaction will also broaden Vectrus’ presence within NAVAIR and the IC and add new Foreign Military Sales customers.

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

  • Strategic buyers are using M&A to accelerate organic growth strategies and add new capabilities and customers
  • Buyers continue to value prime, F&O contracts and backlog, along with infrastructure maturity and rapid growth
  • Despite the economic volatility created due to the COVID-19 pandemic, M&A demand remains strong for well-positioned companies

 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

Vectrus to Acquire Zenetex, Accelerating Converged Infrastructure Strategy and Further Expanding Intelligence and Foreign Military Client Portfolio

  • Secures Vectrus as a leader in the converged infrastructure market by expanding integrated capabilities in Logistics and Supply Chain, Security, Advanced Engineering, IT, and International Readiness Solutions
  • Expands Vectrus content at client installations, facilities, and bases with the addition of mission-critical support services for vital defense aviation programs
  • Broadens reach into the Intelligence Community and adds new Foreign Military Sales clients
  • Increases backlog by more than $700 million and provides a foundation for continued growth
  • Expected to be accretive to 2021 Adjusted Diluted EPS and Adjusted EBITDA margin

COLORADO SPRINGS, Colo., Dec. 28, 2020 – Vectrus, Inc. (NYSE: VEC) announced today that it has signed a definitive agreement to acquire Zenetex, a leading provider of technical and strategic solutions focused on enabling mission readiness, performance, and enhanced protection for defense and national security clients globally. The acquisition adds critical new capabilities which will accelerate Vectrus’ converged infrastructure strategy and expands the company’s client base with new DoD, intelligence and foreign military clients. The transaction is valued at approximately $112 million, net of $11 million of expected tax benefits.

“I am excited to welcome the Zenetex employees to Vectrus,” said Chuck Prow, president and chief executive officer of Vectrus. “This important acquisition significantly enhances our capabilities across a number of high priority clients and accelerates our strategy to deliver a more integrated and comprehensive suite of solutions to our clients globally. Zenetex broadens our reach into the Intelligence Community and expands our engineering and digital technology offerings, which is critical as we expand our capabilities to help our clients’ transition to a more instrumented and converged approach to supply chain and facility management.”

Strategic Benefits and Transaction Highlights:

  • Strengthens Position as Leading Fully-Integrated Provider in the Converged Infrastructure Market: Brings integrated security capabilities that provide systematic protection of physical assets, IP, and computer systems, which further builds on Vectrus’ integrated electronic security solutions that protect thousands of facilities and assets.
  • Adds Higher End Integrated Logistics: Brings people, skills, knowledge, equipment, tools, and technical data to establish, execute and maintain logistics policies, processes and procedures, which builds on Vectrus’ forward-deployed operational logistics capabilities.
  • Expands Operations and Maintenance Services to Increase Content and Scope at Client Installations: Provides mission-critical readiness services for legacy and next generation aircraft through full spectrum Maintenance, Repair & Overhaul services that include “backshop” operations, lab systems, and weapon subsystems, which increases Vectrus’ overall addressable market and content at client installations, facilities, and bases.
  • Expands Intelligence and Federal Client Footprint: Provides unique access to highly attractive Intelligence Community clients and advances the company’s Navy campaign to include Naval Air Systems Command and Naval Supply Systems Command.
  • Adds Foreign Military Sales (FMS) Clients and Expertise: The company’s FMS services supports more than 40 countries, including Qatar, Malaysia, Spain, Morocco, Kuwait, Denmark, Australia, Canada, and provides significant channels for future growth. The company’s legacy and experience related to FMS has resulted in a recent award to provide an International Readiness Operational Software Management System, a prototype to improve readiness initiatives, accelerate product delivery, and optimize the reliability of operational and aviation readiness for foreign partners abroad.
  • Strong Backlog and Growth Outlook: Zenetex is at the front end of significant new business awards with over $700 million in contract backlog that provides strong revenue visibility and a foundation for continued growth.

Forward-Looking Safe Harbor Statement

“Zenetex and Vectrus make an extremely powerful combination and I couldn’t be happier with this next step in our team’s journey,” said Mark Green, chairman and chief executive officer of Zenetex. “Our culture, mission, vision, and values are strongly aligned and founded on delivering successful service in support of our clients’ critical missions. The Zenetex capabilities, client access, and high performing teams complement the existing portfolio at Vectrus and will add additional value to both company’s clients while serving new markets with the combined power of our people.”

About Vectrus

Vectrus is a leading provider of global service solutions with a history in the services market that dates back more than 70 years. The company provides facility and base operations; supply chain and logistics services; information technology mission support; and engineering and digital technology services primarily to U.S. government customers around the world. Vectrus is differentiated by operational excellence, superior program performance, a history of long-term customer relationships and a strong commitment to its clients’ mission success. Vectrus is headquartered in Colorado Springs, Colo., and includes about 7,100 employees spanning 148 locations in 26 countries and territories. In 2019, Vectrus generated sales of $1.4 billion. For more information, visit the company’s website at www.vectrus.com or connect with Vectrus on Facebook, Twitter, and LinkedIn.

KippsDeSanto & Co. Advises Titania Solutions Group, Inc. on its Sale to Swish Data Corporation

/in /by

KippsDeSanto & Co. Advises Titania Solutions Group, Inc. on its Sale to Swish Data Corporation

 KippsDeSanto & Co. is pleased to announce the sale of Titania Solutions Group, Inc. (“Titania” or the “Company”) to Swish Data Corporation.

Headquartered in Warrenton, VA, Titania has served as a leading provider of enterprise solutions, program management, information technology, and systems integration services for over eight years to high-profile Federal customers within the US Army, US Navy, Centers for Medicare & Medicaid Services (“CMS”), Federal Aviation Administration (“FAA”), and National Institutes of Health (“NIH”), amongst others.  The Company has positioned itself as a leading technology partner with established customer relationships, strong technical talent, and differentiated market knowledge serving as a trusted partner for its customers.  The Company boasts a substantial legacy providing mission-oriented military intelligence training on several substantial programs; thought leadership associated with rapidly evolving rules, policy, and laws related to public and civil operation of unmanned aircraft systems (“UAS”); and technical knowledge in critical applications of DevSecOps and Agile methodologies for government healthcare organizations.  Titania’s core capabilities and solutions are focused in the areas of cybersecurity, enterprise solutions, test and evaluation, program management support and data management, operational intelligence and training, healthcare information technology, and information technology governance, in each case with a unique perspective on delivering market-informed insights to key decision makers.

Titania’s impressive suite of engineering services capabilities is delivered by a team of subject matter experts with proven experience in uniform, government service, and leading engineering organizations.  This unique multi-faceted perspective and skillset is leveraged for the sole purpose of delivering excellent support to clients with complex and evolving challenges, often at the forefront of long-term market opportunities.  Combined with a robust portfolio of relevant contract vehicles, including SPARC, CIO SP3, eFAST, MOBIS, and SeaPort NxG, the Company is strongly positioned to continue its growth trajectory as part of its new partnership with Swish Data Corporation.

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

  • Continued demand for thought leadership and subject matter expertise in the areas of enterprise solutions, engineering expertise, and program management to solve complex and long-term challenges for mission-critical programs within federal agencies
  • Buyer interest in acquiring organizations with a strong pedigree and deep domain knowledge in specialized areas of expertise supporting long-term and highly-visible programs
  • Buyer focus on strategic alignment with high-priority, forward-looking, and enduring mission areas (e.g., UAS policy and implementation within the FAA)

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

Swish Data Acquires Titania Solutions Group, Inc.

December 1, 2020

Expanding Swish’s capabilities into DevSecOps, the Intelligence Community and Unmanned Aerial Vehicles

MCLEAN, Va. – Today, Swish Data Corporation (Swish), a provider of technology solutions and engineering services, announced that the company has acquired Titania Solutions Group, Inc. (Titania) as part of an on-going five-year growth and expansion strategy.

Titania is a successful professional services firm with over 100 employees performing mission-critical services for the U.S. Army, FAA, HHS, DISA and other federal organizations. The acquisition of Titania expands Swish’s expertise to include DevSecOps services, intelligence training and operations, and drone and counter-drone activities within the public sector market. This acquisition also brings important technology capabilities, contract vehicles, and valuable customer relationships that further diversify Swish’s government contractor business.

During 2020, Swish continued its impressive organic growth, augmented by the acquisition of MAD Security LLC in 2019, and now by the acquisition of Titania. “This acquisition further diversifies Swish’s market reach and capabilities, with a company that has a proven track record of success and superior performance,” stated Monty Deel, chief executive officer for Swish.

Jodi Johnson, founder and former chief executive officer for Titania, commented, “I could not be more proud of the company we have built and I’m very happy to find a like-minded company in Swish that will continue to nurture our employees and create opportunities to excel, all the while providing valuable, mission-critical services to our country.”

Titania will be operated as an independent business subsidiary of Swish. John Hibbert, the previous chief operating officer for Titania, will serve as general manager. “It’s an honor to be joining forces with Swish,” John stated. “The combined team has substantially greater capabilities than either company has alone and will result in a compelling value proposition for our employees, customers, and partners. This is an exciting time for Titania.”

About Swish Data

Swish is a Service-Disabled Veteran-Owned and HUBZone-certified Small Business provider of technology solutions and engineering services to the U.S. Federal Government with a focus on high-quality outcomes for our clients. Our experienced and certified engineers research and evaluate the most innovative approaches to solving mission problems and developing full life cycle solution offerings to ensure our clients realize maximum operational value. Swish carries a Top Security facility clearance, and the cleared staff are skilled at delivering high-performance solutions and services. Swish ensures your digital service capabilities, performance and security exceed your expectations and requirements. www.swishdata.com.

Media Contact:
​Sherryl Dorch
​Phone:  703-407-4696
Email:  sdorch@swishdata.com

blog shake image

KippsDeSanto & Co. advised QuantiTech LLC on its investment by Sagewind Capital LLC

/in /by

KippsDeSanto & Co. advised QuantiTech LLC on its investment by Sagewind Capital LLC

KippsDeSanto & Co. is pleased to announce that our client, QuantiTech LLC (“QuantiTech” or the “Company”) has received a strategic investment by Sagewind Capital LLC.

Headquartered in Huntsville, Alabama, QuantiTech has served as a leading provider of highly technical engineering and management support services for vital mission-critical programs for nearly 30 years, primarily for the Department of Defense (“DoD”).  The Company serves as a trusted partner for key defense agencies responsible for maintaining technological superiority and warfighter dominance through the delivery of detailed studies, risk analyses, internally developed tools and frameworks, and thought leadership to solve complex and continuously evolving mission requirements.  QuantiTech’s core capabilities are focused on systems engineering, cybersecurity, test and evaluation, and program management for innovative priority spending areas, including hypersonics, counter-unmanned aircraft systems, and human spaceflight for the Army, Air Force, NASA, and various other defense agencies.

The Company’s suite of advanced capabilities is supported by a highly talented team of engineers and subject matter experts who possess deep domain knowledge and diverse real-world experience across myriad engineering disciplines.  Dedication to protecting national security interests coupled with a focus on delivering exceptional customer satisfaction have translated into exceptional growth across the Company.  QuantiTech boasts the ability to integrate large programs, with the maturity and vision to support continued growth and performance.

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

  • Strong demand for advanced, engineering solutions and subject matter expertise designed to solve complex challenges for large scale and mission-critical programs across well-funded DoD and national security customers
  • Buyer focus on strategic alignment with high-priority, forward-looking, and well-funded mission areas such as space, hypersonics, and unmanned aircraft systems
  • Financial sponsors continue to deploy capital and compete with strategics in the defense and government services markets for coveted assets with long-term contracts, robust backlog, experienced management teams, and strategic footprints in growing markets as new platforms in the market

 About KippsDeSanto & Co.

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

Investment Banking products and services are offered through KippsDeSanto & Co., a non-bank subsidiary of Capital One, N.A., a wholly-owned subsidiary of Capital One Financial Corporation, and a member of FINRA and SIPC. Products and services are Not FDIC insured, Not Bank Guaranteed, May Lose Value, Not a Deposit, and Not Insured by Any Federal Government Agency.

Press Release

Sagewind Capital Invests in QuantiTech

NEW YORK, July 8, 2020 /PRNewswire/ — Sagewind Capital LLC (“Sagewind”), a New York-based private equity firm, announced today an investment in QuantiTech LLC (“QuantiTech” or “The Company”), a leading provider of highly technical engineering services to the Army, Air Force, NASA and various other key defense agencies. QuantiTech’s capabilities supporting hypersonics, counter unmanned aircraft systems and human spaceflight include systems engineering, cybersecurity, test & evaluation, and program management. Financial terms of the transaction were not disclosed.

“We are very excited to partner with the QuantiTech team,” said Steven Lefkowitz, Managing Partner of Sagewind. “QuantiTech’s founder, Sheila Brown, and Chairman, Randy Cash, have built a reputation for excellence and established the Company as an essential partner for our nation’s defense community. QuantiTech has highly educated and talented personnel who are passionate about missions critical to our national security. We are very impressed with the business the QuantiTech team has built and look forward to supporting them as they execute on their growth strategies.”

The management team of QuantiTech will continue with the company and will retain a significant equity ownership.

Darryl Wortman, President and CEO of QuantiTech said, “Sagewind is an ideal partner for us that has a strong track record of supporting government services companies. They have backed many management teams to help grow their businesses through acquisitions and other growth initiatives, which is exactly what we need as we strive to better support our customers’ critical missions by providing a broader set of capabilities.”

Mr. Cash, the former CEO of QuantiTech and a former Vice President in various roles at SAIC, will continue as Chairman of the Board of Directors. As part of the transaction, industry veterans Deborah Dunie, Dr. Paul G. Kaminski and General Paul Kern, US Army (Ret) will join the QuantiTech Board of Directors. Ms. Dunie brings over 30 years of senior level business experience in government services, most recently as the former CTO of CACI and a former Director of SAIC. Dr. Kaminski served as the Undersecretary of Defense for acquisition and technology from 1994 to 1997, has chaired and served on several company and government advisory boards, and was twice Chairman of the Defense Science Board, of which he is still a member. General Kern retired after almost 38 years with the US Army as the Commanding General of the Army Materiel Command and is currently a member of the Defense Science Board and a Senior Counselor at The Cohen Group.

Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as Sagewind’s legal counsel. Maynard Cooper & Gale served as legal counsel to QuantiTech. KippsDeSanto acted as the exclusive financial advisor to QuantiTech.

About QuantiTech LLC

QuantiTech is a leading provider of highly technical engineering and management support services for the federal government, based in Huntsville, AL. It serves mission critical programs, primarily to key defense agencies responsible for maintaining technological superiority and warfighter dominance. QuantiTech’s capabilities are focused on systems engineering, cybersecurity, test & evaluation and program management for key defense end-markets such as hypersonics, counter unmanned aircraft systems and human spaceflight for the Army, Air Force, NASA and various other defense agencies.

About Sagewind Capital LLC

Sagewind Capital LLC is a New York-based middle-market private equity firm. Sagewind seeks to partner with exceptional management teams and focuses on significant capital appreciation by helping businesses grow organically and through strategic acquisitions. Since inception, Sagewind has made eight investments across several industries, including government services, aerospace & defense, software, information technology, healthcare and business services. The firm is focused on long-term capital appreciation and has the flexibility to own businesses for extended periods. For more information please visit www.sagewindcapital.com.

blog workplace image

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

/in /by

KippsDeSanto’s DealView — Top 10 Merger & Acquisition (“M&A”) Deals of the Quarter(1)

KippsDeSanto & Co., an investment banking firm focused on serving growth-oriented Aerospace / Defense, 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 June 30, 2020.

While the COVID-19 global pandemic has impacted M&A activity, most notably fueling a decline in  April transaction volume (particularly in the Aerospace / Defense side of the market), buyers generally remain interested in strategic acquisitions. In addition, volume appears to be rebounding with 16 and 28 announced transactions in May and June, respectively, across all three sectors.

The following is our take on the most notable announced M&A transactions in the second quarter of 2020 — not only based on size, but also on strategic importance and / or impact.

Of the above transactions, the following was especially noteworthy:

The aerospace and defense deal of the quarter is AMERGINT Technologies’ pending acquisition of Raytheon Technologies’ (NYSE: RTX) space-based precision optics business (“the Business”).  Formerly a part of Collins Aerospace, the Business provides precision electro-optical systems for national security space missions and defense survivability needs.  This transaction marks the third and final required divestiture as part of the regulatory terms laid out by the Justice Department’s Antitrust Division for the merger between United Technologies and Raytheon.  Upon completion of the transaction, the Business will become a wholly owned business unit of AMERGINT Technologies, a portfolio company of The Blackstone Group.  AMERGINT is a leading provider of software-defined technology for military, intelligence, and commercial space customers with a focus on developing NextGen solutions for capturing, processing, transporting, and exploiting mission critical data.  The acquisition of preeminent electro-optical capabilities will vertically extend AMERGINT’s product offering and allow the combined entity to target more comprehensive space opportunities and contracts.  With a renewed federal and commercial interest in the space industry, the transaction highlights an optimistic outlook of sustained growth and investment in the sector.  In addition, the acquisition highlights the presence of private equity financing in an industry dominated by venture capitalists and start-up funding.

The government technology solutions deal of the quarter is Cognosante’s acquisition of Enterprise Information Services, LLC (“EIS”).  EIS is leading provider of biometrics, cybersecurity, application development, cloud migration, and other IT services to defense and civilian government agencies, including the U.S. Army, Intelligence Community, and Department of Homeland Security.  In addition to its in-demand, NextGen IT offerings, EIS has amassed prime positions on numerous high-profile, full & open (“F&O”) contract vehicles, including Alliant II, Army RS3, and ITES-3S. Through this transaction, Cognosante bolstered its capability set, greatly expanded its DoD presence, and enhanced its contract portfolio.  This deal underscores the continued demand for NextGen IT companies and buyer interest in prime, F&O positions on best-in-class vehicles.  Additionally, despite COVID-19 related market impacts, M&A deals continue to transpire between well-positioned buyers and sellers.

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.

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.