KippsDeSanto & Co. advises Locana, a portfolio company of Transom Capital Group and Angeleno Group, on its sale to TRC Companies, Inc.

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KippsDeSanto & Co. advises Locana, a portfolio company of Transom Capital Group and Angeleno Group, on its sale to TRC Companies, Inc.

KippsDeSanto & Co. is pleased to announce the sale of Locana (or the “Company”), a portfolio company of Transom Capital Group and Angeleno Group, to TRC Companies, Inc., a portfolio company of Warburg Pincus and Energy Impact Partners.

Locana provides leading tech-enabled, digital transformation solutions and field mobility software specializing in geospatial and location intelligence for spatially distributed enterprises. The Company is a global leader in enterprise geospatial technologies with decades of experience supplying modern location-based solutions that help solve the world’s most pressing challenges. By taking a location-first approach to problem solving, Locana builds and implements solutions for a broad base of customers across industries, including utilities, telecommunications, commercial, federal, and technology.

With a presence in the U.S., Canada, and the UK, Locana further supports TRC’s strategy to expand its technology business across Europe. The acquisition also brings the addition of software products to the TRC portfolio. Locana developed LemurTM, an enterprise-grade mobile software solution that seamlessly delivers integrated, intuitive tools for work order management, asset management, and more.

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

  • Explosion of spatial data and the rapid advancement of geospatial and location intelligence technology is driving demand for firms with the requisite expertise to integrate and leverage many innovations across both proprietary and open-source technologies;
  • Tech-enabled solutions focused on in-demand enterprise applications and technology platforms like Esri and SAP continue to be highly coveted as spatially distributed enterprises modernize critical systems and migrate to the cloud;
  • Significant market demand for vertical focused technology and software providers with proprietary solutions that are purpose-built to address industry / customer-specific pain points, and which represent significant recurring revenue opportunities;
  • Accelerating investment, M&A activity, and strategic interest in the geospatial and utilities technology and software segment as the sector undergoes the most dramatic transformation in the past century;
  • Buyers with explicit growth strategies, industry knowledge, and private equity backing continue to deploy capital to build scale and depth in high growth areas

Read more in the full press release.

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 200 industry transactions since 2008, 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.

KippsDeSanto & Co. advises Creoal Consulting, LLC on its sale to SMX, a portfolio company of OceanSound Partners

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KippsDeSanto & Co. advises Creoal Consulting, LLC on its sale to SMX, a portfolio company of OceanSound Partners

KippsDeSanto & Co. is pleased to announce the sale of Creoal Consulting, LLC (“Creoal” or the “Company”) to SMX, a portfolio company of OceanSound Partners.

Headquartered in Washington, D.C., Creoal brings highly skilled technical staff members with deep expertise in Oracle enterprise applications, supporting a broad range of public sector and commercial clients. The Company’s solutions cover the full spectrum of digital transformation solutions to help clients move from legacy on-premise software to more flexible, secure, and scalable cloud-native fully integrated SaaS systems. Creoal adds to SMX valuable new federal civilian, commercial, and state/local government clients and expands its digital transformation solution offerings with Oracle Cloud.

The entire executive partner team will remain with SMX and operate as a horizontal division in SMX’s Digital Solutions Group under President Sandeep Dorawala. Creoal Partners Brian McCann, Tom Beck, and Doug Oakford affirmed why this is the right move for the Company. “Joining the SMX team ensures a great career trajectory for our employees, as both companies are aligned across markets, with complementary service capabilities with access to a broader range of innovative solutions for our clients, and the ability to better leverage SMX automation, and hybrid and multi-cloud solutions with an entirely new set of clients.”

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

  • Digital transformation and cloud solutions focused on in-demand enterprise applications and technology platforms like Oracle continue to be highly coveted as government agencies and enterprises modernize their mission critical systems and migrate to the cloud
  • Significant value attributed toward targets with leading market positions, deep subject matter expertise, highly differentiated tech-enabled solution offerings, vertical focus, entrenched customer relationships, and proven land and expand track records
  • Buyers with explicit growth strategies, industry knowledge, and private equity backing continue to deploy capital and buy and build strategies to build scale and depth in high growth areas

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 200 industry transactions since 2008, 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.

KippsDeSanto & Co. advises CSW Systems on its acquisition by Summit7, a portfolio company of WestView Capital

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KippsDeSanto & Co. advises CSW Systems on its acquisition by Summit7, a portfolio company of WestView Capital

KippsDeSanto & Co. is pleased to announce the strategic sale of its client, CSW Systems, Inc. (“CSW” or the “Company”), to Summit 7, a portfolio company of WestView Capital (“WestView”).

Headquartered in Warrenton, VA, CSW is a provider of managed services and continuous compliance support for classified data processing facilities. The Company builds its customers’ systems, achieves accreditation, and provides managed IT services, systems & network engineering, cybersecurity engineering, compliance services, among other services, so its customers can maintain their mission focus to deliver its solutions to the government.

This combination will drive accelerated growth for two highly complementary companies to create a powerful, scaled platform in both the classified and non-classified space providing cybersecurity, managed IT and compliance solutions.

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

  • Significant market demand for technology-driven companies providing managed IT services and security solutions;
  • Companies providing technology solutions for high-profile Intelligence Community customers remain highly coveted in the market;
  • Continued focus on high-growth oriented firms poised to capitalize on key market growth drivers with exemplary past performance, and sustainable recurring revenue and profitability; and
  • Robust financial sponsor activity and appetite for new technology investments, particularly for companies with leading market positions, differentiated mission-focused managed services capabilities, enduring customer relationships, employee-centric culture, and proven leadership teams

Read more in the full press release.

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 200 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.

KippsDeSanto & Co. advises Thompson Gray, Inc. on Sale to Newly Formed ESOP

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KippsDeSanto & Co. advises advises Thompson Gray, Inc. on Sale to Newly Formed ESOP

KippsDeSanto & Co. is pleased to announce the sale of Thompson Gray, Inc. (“Thompson Gray” or the “Company”) to a newly formed Employee Stock Ownership Plan (“ESOP”), making the Company 100% employee owned.  The transaction enables the Company’s employees, management, and former shareholders to benefit in the ongoing success of the business, while affording the Company’s customers continuity of mission support from a trusted advisor.  The transaction was structured in partnership with Thompson Gray’s management team, FMI Capital Advisors, SCJ Fiduciary Services, and SouthState Bank.

Headquartered in Huntsville, AL, Thompson Gray provides enterprise information technology (“IT”), digital transformation, financial management, and comprehensive technical and programmatic support services to U.S. Government customers.  The Company’s core capabilities include the deployment, optimization, and sustainment of SAP-based Enterprise Resource Planning (“ERP”) systems; robotic process automation (“RPA”); data visualization and modeling; systems engineering; audit readiness and financial transformation; strategic planning; and program management.  The Company’s team is composed of nationally recognized experts and is built upon the idea of providing unparalleled subject matter expertise to defense and civilian customers.

We believe this transaction demonstrates several key trends in the defense / government services and commercial technology deal environment:

  • ESOP buyouts continue to be an actionable transaction alternative, providing long-term benefits to shareholders and employees
  • Entrenched positions on mission-critical programs and expertise across technology capabilities such as SAP, Oracle, and other low-code, no-code platforms continue to attract strong investor and capital provider interest
  • Companies that possess strong past performance, long term customer relationships, and a track record of recurring contract awards can have a range of transaction alternatives beyond just the traditional strategic buyer and private equity alternatives

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 200 industry transactions since 2008, 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.

KippsDeSanto & Co. advises Spatial Business Systems LLC on its sale to an affiliate of Peak Rock Capital

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KippsDeSanto & Co. advises Spatial Business Systems LLC on its sale to an affiliate of Peak Rock Capital

KippsDeSanto & Co. is pleased to announce the sale of its client, Spatial Business Systems LLC (“SBS” or the “Company”), to an affiliate of Peak Rock Capital (“Peak Rock”), a leading middle-market private investment firm.

Headquartered in Littleton, CO, SBS is a leading provider of intelligent design software and spatial data integration solutions to many of the world’s largest utilities and infrastructure firms across North America, Europe, and Australia. The Company’s suite of vertical-focused software supports the engineering and design of critical network infrastructure assets, creating real-world models that are used to manage workflows, facilitate collaboration and standardize design rules.

SBS  has a deeply entrenched franchise position across multiple segments of the utility industry and a rapidly growing presence in adjacent infrastructure verticals including architecture, engineering and construction, telecommunications and water. The Company serves a large, diversified and referenceable blue-chip customer base, including 18 of the 23 Fortune 500 utilities, across an expansive global footprint.

Peak Rock Capital’s knowledge and expertise in the utilities and infrastructure vertical will help to accelerate the Company’s growth and support further investments in the Company’s product offering, go-to-market as well as expansion into new sectors and geographies.

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

  • Significant market demand for vertical-focused software providers with solutions that are purpose-built to address industry and customer-specific requirements, drive digital transformation and deliver massive ROI
  • Accelerating investment and M&A activity in the utility and infrastructure technology and software segment as the sector undergoes the most dramatic transformation in the past century
  • Continued demand for companies that are poised to capitalize on key market growth drivers (e.g., increasing infrastructure investment, grid modernization, decarbonization & renewable energy, transportation electrification, etc.)
  • Robust financial sponsor activity and appetite for new technology and software platform investments, particularly for companies with leading market positions, best-in-class, highly differentiated technology and software and seasoned management teams

 About KippsDeSanto & Co. KippsDeSanto & Co. is an investment banking firm focused on serving growth-oriented Aerospace / Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity and industry experience. We help market leaders realize their full strategic value. Having advised on over 175 industry transactions, KippsDeSanto is recognized for our analytical rigor, market insight, and broad industry relationships. There’s no substitute for experience.  For more information, visit www.kippsdesanto.com

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

Press Release

October 03, 2022

An affiliate of Peak Rock Capital (“Peak Rock”), a leading middle-market private investment firm, announced today that it has completed an acquisition of Spatial Business Systems LLC (“SBS” or the “Company”), in partnership with the Company’s founders and management team.

SBS is a leading provider of intelligent design software and spatial data integration solutions to many of the world’s largest utilities and infrastructure firms across North America, Europe and Australia. The Company’s suite of vertical-focused software supports the engineering and design of critical network infrastructure assets, creating real-world models that are used to manage workflows, facilitate collaboration and standardize design rules.

Jordan Campbell, Managing Director of Peak Rock, said, “SBS represents an exciting opportunity to invest in a rapidly growing software platform within the highly attractive utilities and infrastructure vertical. Investment in utility infrastructure to modernize the power grid and enable more renewable energy sources is of critical importance and SBS’ tools offer a best-in-class solution to facilitate efficient and effective design. We are thrilled to partner with SBS to accelerate the Company’s growth and support further investments in the product offering as well as expansion into new applications and geographies.”

Dennis Beck, Chief Executive Officer of SBS, commented, “We are excited to partner with Peak Rock as we embark on the next chapter of our development. Peak Rock has a deep understanding of our business and customers, and a strong track record of driving sustainable growth by supporting long-term investments. Andy and I are delighted to welcome this new investment and will continue to work closely with the dedicated SBS team to further serve our customers and expand our footprint.”

“This transaction exemplifies Peak Rock’s commitment to invest in leading enterprise software businesses with a differentiated value proposition that are serving attractive end markets. We continue to actively seek founder-owned platforms that we believe would benefit from our ability to drive transformational growth,” added Anthony DiSimone, Chief Executive Officer of Peak Rock.

ABOUT SPATIAL BUSINESS SYSTEMS

SBS is a leading provider of intelligent design software to utilities and critical network infrastructure assets. SBS’s suite of vertical-focused software solutions automate and streamline engineering & design workflows, integrate spatial and design data and improve design effectiveness. The Company serves a blue-chip customer base including some of the world’s leading utilities and infrastructure firms. Founded by Dennis Beck and Andy Street, SBS is headquartered in Denver, Colorado with an office in Melbourne, Australia.

ABOUT PEAK ROCK CAPITAL

Peak Rock Capital is a leading middle-market private investment firm that makes equity and debt investments in companies in North America and Europe. Peak Rock’s equity investment platform focuses on opportunities where it can support senior management to drive rapid growth and performance improvement, with expertise in corporate carve-outs and partnering with families and founders seeking first-time institutional capital. Peak Rock’s credit platform invests across capital structures, with a broad mandate to provide flexible, tailored capital solutions to middle-market and growth-oriented businesses. Peak Rock’s real estate platform makes equity and debt investments in small to mid-sized real estate assets in attractive, growing geographies. For further information about Peak Rock Capital, please visit www.peakrockcapital.com

KippsDeSanto & Co. advises Seneca Resources, LLC on its sale to Caymus Equity Partners

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KippsDeSanto & Co. advises Seneca Resources, LLC on its sale to Caymus Equity Partners

KippsDeSanto & Co. is pleased to announce the sale of its client, Seneca Resources, LLC (“Seneca Resources”) to Caymus Equity Partners LLC (“Caymus”).

Headquartered in Reston, VA, Seneca Resources is a leading national information technology (“IT”), engineering, and business professional talent provider serving highly sought-after customers with established footholds across large, attractive end markets, including government, financial, and healthcare, among others.

Through the combination of its multi-pronged delivery model, deep IT and engineering domain expertise, proprietary systems and talent communities, and local presence in the core markets in which it operates, Seneca Resources has established itself as a premiere workforce solutions platform for its customers. Seneca Resources’ deeply entrenched relationships with its customers as their go-to-talent provider has allowed for demonstrable and consistent growth, driving additional workforce solutions and wallet share expansion across its diverse client base.

We believe this transaction demonstrates several key trends in the Federal and commercial technology talent and consulting market:

  • The confluence of several market trends including skilled worker shortage, unemployment, remote work, and demand for technology expertise has increased market appetite for more complex solutions for staffing and recruitment;
  • Buyers continue to place significant value on firms with key market presence, entrenched customer relationships, and long-term contractual engagements to augment existing client portfolio, scale, and accelerate growth; and
  • Private equity continues to deploy capital in the technology talent market, establishing middle market platforms 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 175 industry transactions, KippsDeSanto is recognized for our analytical rigor, market insight, and broad industry relationships. There’s no substitute for experience.  For more information, visit www.kippsdesanto.com.

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

Press Release

September 28, 2022

Caymus Equity Partners LLC (“Caymus Equity”) has acquired Seneca Resources, LLC (“Seneca” or the “Company”), a rapidly growing IT staffing company based in Reston, VA, with additional offices in Richmond, VA, Atlanta, GA, Birmingham, AL, and Dallas, TX. The acquisition represents Caymus Equity’s third staffing investment and the second investment out of Caymus Equity Partners Fund II.

Founded in 2010, and led by Rob Persiano, the Company services a nationwide customer base and focuses on the delivery of difficult to find, top-tier technology talent capable of addressing complex IT and engineering workforce needs. Seneca’s deep bench of high-end IT consultants has resulted in tenured relationships with numerous notable clients spanning industries including Government, Healthcare, and Financial Services. Caymus Equity’s investment provides Seneca with the capital support necessary to continue expansion with existing clients, penetrate new industry verticals and geographies, and pursue strategic acquisitions.

“Seneca’s clients have specialized IT needs requiring certain skill sets many businesses find difficult to recruit internally and other, less specialized staffing firms struggle to provide. Our success at Seneca is the result of a differentiated talent pool developed over the past decade, highly responsive delivery model, and long-term relationships with both our consultants and clients,” commented Mr. Persiano. “Caymus Equity’s historical successes in the staffing space and a shared vision for the future growth plan for Seneca strongly resonated with the entire management team.”

“With the digitization of the global economy and the remarkable growth that the IT staffing industry has experienced as a result, Seneca presented us with an opportunity to leverage our experience and existing relationships in the industry,” commented Blake Cummings, Principal and investment-lead at Caymus Equity. “We could not be more excited to partner with Rob and the Seneca team to continue building the business into the premier IT staffing company in the industry.”

“This transaction continues to deepen our staffing expertise at Caymus Equity, and also furthers the investment momentum we have in our first committed fund, Caymus Equity Partners Fund II,” commented Geoff Faux, Managing Partner. “We are excited to support Rob and his team and look forward to growing the business together.”

Caymus Equity’s staffing experience includes a prior investment in Hospitality Staffing Solutions, the nation’s largest provider of full-time staffing services to hotels, resorts and casinos, and a current investment in PlanIT Group, a technology consulting firm providing IT consulting and staffing services to a global client base.

The investment in Seneca on September 21, 2022 marks Caymus Equity’s fourteenth platform investment, and second investment out of Caymus Equity Partners Fund II.

To read more about Seneca resources, visit http://www.senecahq.com/

To learn more about Caymus Equity, visit https://www.caymusequity.com/

Caymus Equity Partners

Founded in 2001 and with offices in Atlanta and New York, Caymus Equity Partners is a leading private equity firm focused on control transactions in the lower middle market. We invest in profitable companies with significant upside potential where the owners and management teams are seeking a value-added partner to help fuel growth. Our partnerships center around mutual culture, business values, and goals as the foundation for driving sustainable growth and value for all stakeholders. We strive to work with management to develop and refine strategy and provide support while leaving day-to-day execution to the operators of the business.

Caymus Equity Partners’ other holdings include PureRED, a provider of a unique combination of marketing services that increase sales and customer engagement for world class retail, consumer packaged goods and business-to-business enterprises; Excel Physical Therapy, a premier provider of sports and orthopedic physical therapy and rehabilitation services in northern New Jersey; TriplePoint, a full-service mechanical contractor with operations across six states in the Midwest; Pan-Am Dental, a full-service manufacturer and distributor of high quality custom dental products; PlanIT Group, a provider of a full suite of IT consulting and staffing solutions to the government and commercial sectors; Colorado Barricade, a provider of roadway safety, pavement marking, traffic control, and sign installation solutions for commercial customers, utility contractors and roadway infrastructure maintenance providers in the Rocky Mountain region; and Overland Vehicle Systems, a leading branded supplier of outdoor and automotive aftermarket parts and accessories for Overlanding and off-roading enthusiasts.

b3 group

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

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

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

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

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

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

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

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

About KippsDeSanto & Co. KippsDeSanto & Co. is an investment banking firm focused on serving growth-oriented Space / Aerospace / Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity and industry experience. We help market leaders realize their full strategic value. Having advised on over 175 industry transactions, KippsDeSanto is recognized for our analytical rigor, market insight, and broad industry relationships. There’s no substitute for experience.  For more information, visit www.kippsdesanto.com.

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

Press Release

Octo Acquires Digital Transformation Leader B3 Group

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

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

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

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

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

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

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

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

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

About Octo

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

 About B3

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

variq

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

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

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

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

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

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

About KippsDeSanto & Co. KippsDeSanto & Co. is an investment banking firm focused on serving growth-oriented Aerospace / Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity and industry experience. We help market leaders realize their full strategic value. Having advised on over 140 industry transactions since 2007, KippsDeSanto is recognized for our analytical rigor, market insight, and broad industry relationships. There’s no substitute for experience.  For more information, visit www.kippsdesanto.com. There’s no substitute for experience.  For more information, visit www.kippsdesanto.com.

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

Press Release

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

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

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

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

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

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

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

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

About Capgemini

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

About Capgemini Government Solutions LLC

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

managed care

KippsDeSanto & Co. Advises Managed Care Advisors on its Acquisition by Sedgwick, a Portfolio Company of The Carlyle Group

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KippsDeSanto & Co. Advises Managed Care Advisors on its Acquisition by Sedgwick, a Portfolio Company of The Carlyle Group

KippsDeSanto & Co. is pleased to announce the acquisition of its client, Managed Care Advisors (“MCA” or the “Company”), by Sedgwick, a leading global provider of technology-enabled risk, benefits and integrated business solutions.

Headquartered in Bethesda, Maryland, Managed Care Advisors specializes in workers’ compensation, case and claims management, disability and absence management, analytics, technology solutions, specialty health plan management and employee benefits. Based in Bethesda, Maryland, Managed Care Advisors services customers throughout the United States and all U.S. territories. Since 2005, MCA has provided a comprehensive suite of products and services to the federal market to support federal agencies in improving outcomes, reducing costs, and avoiding unnecessary medical and vocational disability resulting from work-related injuries and illnesses.

The acquisition will also enable MCA to expand its breadth and depth of offerings to the government to include a broad array of world-class risk management and claims solutions that Sedgwick currently delivers in the commercial sector.

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 or services are Not FDIC insured, Not Bank Guaranteed, May Lose Value, Not a Deposit, and Not Insured by Any Federal Government Agency.

Press Release

Sedgwick acquires Managed Care Advisors

MEMPHIS, Tenn.,– Sedgwick, a leading global provider of technology-enabled risk, benefits and integrated business solutions, today announced it has acquired Managed Care Advisors, Inc. (MCA), a Bethesda, Maryland-based government contracting firm and leading provider of workers’ compensation and specialty health plan products and services to the U.S. federal government.

Managed Care Advisors’ expertise includes a comprehensive, outsourced federal agency workers’ compensation case and claims management solution, anchored by the full functionality of its technology platform. MCA’s federally compliant solutions and established performance record will broaden Sedgwick’s access to a wide range of public sector opportunities. The acquisition will also enable MCA to expand its breadth and depth of offerings to the government to include a broad array of world-class risk management and claims solutions that Sedgwick currently delivers in the commercial sector.

“Sedgwick and Managed Care Advisors have a shared focus on delivering excellence and taking care of people,” said Elizabeth Demaret, Sedgwick president, specialty. “We are well aligned to optimize outcomes for our clients and look forward to bringing our combination of value-added services to the employees of federal government agencies.”

MCA will operate as a wholly owned subsidiary of Sedgwick Public Sector, a Sedgwick holding company dedicated to delivering claims services to government entities.

“Joining forces with Sedgwick opens the door to new opportunities for bringing the public sector an even higher level of industry best practices and expertise,” said Lisa Firestone, Managed Care Advisors president and CEO. “I’m excited for what lies ahead in our next chapter with Sedgwick.”

About Sedgwick
Sedgwick is a leading global provider of technology-enabled risk, benefits and integrated business solutions. The company provides a broad range of resources tailored to our clients’ specific needs in casualty, property, marine, benefits, brand protection and other lines. At Sedgwick, caring counts; through the dedication and expertise of more than 27,000 colleagues across 65 countries, the company takes care of people and organizations by mitigating and reducing risks and losses, promoting health and productivity, protecting brand reputations, and containing costs that can impact the bottom line. Sedgwick’s majority shareholder is The Carlyle Group; Stone Point Capital LLC, Caisse de dépôt et placement du Québec (CDPQ), Onex and other management investors are minority shareholders. For more, see www.sedgwick.com.

About Managed Care Advisors
Established in 1997, Managed Care Advisors specializes in workers’ compensation, case and claims management, disability and absence management, analytics, technology solutions, specialty health plan management and employee benefits. Based in Bethesda, Maryland, Managed Care Advisors services customers throughout the United States and all U.S. territories. Since 2005, MCA has provided a comprehensive suite of products and services to the federal market to support federal agencies in improving outcomes, reducing costs, and avoiding unnecessary medical and vocational disability resulting from work-related injuries and illnesses. For more, see www.mcacares.com.

flatirons

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

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

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

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

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

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

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

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

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

About KippsDeSanto & Co. KippsDeSanto & Co. is an investment banking firm focused on serving growth-oriented Aerospace / Defense, Government Services and Technology companies. We are focused on delivering exceptional M&A and Financing transaction results to our clients via leveraging our scale, creativity and industry experience. We help market leaders realize their full strategic value. Having advised on over 140 industry transactions since 2007, KippsDeSanto is recognized for our analytical rigor, market insight, and broad industry relationships. There’s no substitute for experience.  For more information, visit www.kippsdesanto.com. There’s no substitute for experience.  For more information, visit www.kippsdesanto.com.

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

Press Release

TELEO CAPITAL COMPLETES GROWTH EQUITY INVESTMENT IN FLATIRONS SOLUTIONS

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

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

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

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

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

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

About Flatirons Solutions

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

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

About TELEO Capital

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

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