KippsDeSanto & Co. advises Concept Plus on its Growth Investment from Blue Delta Capital Partners

KippsDeSanto & Co. advises Concept Plus on its Growth Investment from Blue Delta Capital Partners

KippsDeSanto & Co. is pleased to announce that its client, Concept Plus, LLC (“Concept Plus” or the “Company”), has received a strategic investment from Blue Delta Capital Partners (“Blue Delta”) a leading growth stage venture capital firm exclusively focused on the U.S. Federal Government Services market.

Headquartered in Fairfax, VA, Concept Plus is a leader in software development solutions focused on Oracle Technologies, Cloud Computing, Data Analytics, Digital Services, and Artificial Intelligence for U.S. Government customers. The Company specializes in working alongside the five primary hyperscale cloud infrastructure providers, with a focus on Oracle, to develop and modernize mission critical enterprise systems for the U.S. Federal Government.

Founded in 2008, Concept Plus has utilized its decade plus of expertise in technology and government consulting to deliver innovative technology solutions that maximize client results. Blue Delta’s minority- investment will support Concept Plus strategic growth evolution, bolster the executive leadership team, and help the Company put together a market leading Board of Directors.

This transaction highlights several key trends in the M&A market:

• Significant market demand for companies with deep expertise working with Oracle, Microsoft, and other hyperscale cloud infrastructure providers that serve as the foundation for the U.S. Federal Government and commercial enterprises’ most critical modernization efforts

• Increasing appetite for mission-oriented implementation specialists that optimize enterprise systems, enhance interoperability, and drive mission performance

• Continued focus on high-growth companies that are aligned with Federal and commercial enterprise IT budgetary trends and strategic priorities (e.g., IT system modernization, data as a strategic asset, etc.)

• Financial sponsors remain active for leading assets, particularly for companies with leading market positions, differentiated digital modernization capabilities, and enduring relationship with well-funded customers

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.

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 SixGen, Inc., a portfolio company of Chart National L.P., on its sale to Washington Harbour Partners

KippsDeSanto & Co. advises SixGen, Inc., a portfolio company of Chart National L.P., on its sale to Washington Harbour Partners

KippsDeSanto & Co. is pleased to announce the sale of its client, SixGen, Inc. (“SixGen” or the “Company”), to Washington Harbour Partners LP (“Washington Harbour”), a leading private investment firm that specializes in partnering with founders and management teams to unlock their next phase of growth.

Headquartered near Annapolis, MD, SixGen is a world-class cyber solutions company for the U.S. national security, intelligence, and defense communities, and critical commercial industries. The Company has built its reputation as an award-winning, industry-recognized leader in comprehensive cyber operations with specific expertise in red team services and tool development. Leveraging deep technical expertise developing proprietary cyber products, coupled with a full suite of complementary cybersecurity services, SixGen deploys unified cyber solutions in support of public and private networks, devices, and critical infrastructure. SixGen’s core offerings span vulnerability research, threat hunting, machine learning and data science, incident response, and cyber network operations. With a unique focus on integrating software with purpose-built hardware, the team’s experienced and credentialed cyber professionals develop customizable and proprietary solutions that go beyond traditional cyber compliance checks.

SixGen employs a critical mass of experienced, credentialed, and cleared subject matter experts (“SMEs”) with diverse backgrounds from premier military and cyber organizations to maintain its position as a trusted partner to well-funded customers across the national security landscape. With a world-class team of operators, pioneering developers, and engineers, and cyber data science and threat prediction utilizing cyber-AI platforms, SixGen offers industry leading red team capabilities, with bespoke expertise in emulating and assessing real-world threats, supported by a portfolio of next generation intellectual property. SixGen’s team protects national security interests across the expanding cyber battlefield from coordinated attacks by the most advanced cyber adversaries ranging from individual rogue actors to sophisticated nation-states.

The acquisition represents a new platform for Washington Harbour, affording SixGen a new partner at a key inflection point in its growth trajectory as the Company’s cyber services and high-end product suite are critical to the national security mission and designed to meet the unique and specific needs of the nation’s most important cybersecurity problems. Boasting recent awards on numerous signature programs, as well as access to key contract vehicles, SixGen is positioned for accelerated growth as an offensive cyber specialist in both its existing and untapped markets.

This transaction highlights several key trends in the cybersecurity M&A market:

• Significant market demand for technology-driven companies providing unified cybersecurity products and services;
• Companies deeply embedded on signature programs with high-profile agencies and customers remain highly coveted;
• Continued focus on high-growth firms with critical contract vehicles aligned with ample funding, administrative priorities, and an evolving threat landscape; and
• Significant appetite from financial sponsors for assets with leading market positions, differentiated solutions offerings, and experienced 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 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.

SoarTech acquired by Forward Slope, Inc.

KippsDeSanto & Co. advises Soar Technology Inc. on its sale to Forward Slope Inc., a portfolio company of Trive Capital

SoarTech acquired by Forward Slope, Inc.

KippsDeSanto & Co. advises Soar Technology Inc. on its sale to Forward Slope Inc., a portfolio company of Trive Capital

KippsDeSanto & Co. is pleased to announce the sale of its client, Soar Technology Inc. (“SoarTech” or the “Company”) to Forward Slope Inc. (“Forward Slope”), a portfolio company of Trive Capital.

Headquartered in Ann Arbor, MI, SoarTech is a leading provider of advanced artificial intelligence (“AI”) solutions to address complex Department of Defense (“DoD”) mission requirements. SoarTech leverages cognitive, neural, swarm, and machine learning technologies built on computational cognitive designs that enable the creation of autonomous agents to assess large amounts of data and assist human decision-making. The Company’s solutions emphasize natural interaction, transparency, and explainability, in order to create AI systems the Warfighter can trust.

SoarTech’s world-class AI scientists and engineers possess deep subject matter expertise and experience in research, government contracting, defense procurement, and academia.  The Company implements its “Whiteboard to Warfighter” development process to enable next-generation national security superiority. The Company has built an extensive portfolio of intellectual property (“IP”), as well as a wealth of historical small business innovative research (“SBIR”) awards with a heavy focus on AI-enabled technologies that have been successfully transitioned to end customer adoption. SoarTech’s cutting-edge solutions, qualifications, and extensive AI knowledge position the Company to meet evolving contract AI requirements across the DoD.

The partnership with Forward Slope will further enhance SoarTech’s growth as the Company continues to provide next-generation technologies across the DoD and adjacent customers and applications.

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

  • Strong market appetite for firms with leading IP and capabilities in AI / Machine Learning  
  • Emphasis on highly strategic investments aligned closely with priority funding areas resulting from the evolving global threat environment
  • Financial sponsors remain focused on complementary add-on acquisitions that offer new capabilities with high-end technology expertise, as well as expanding customer footprint with well-positioned 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 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 Axim Geospatial. on its sale to NV5

KippsDeSanto & Co. advises Axim Geospatial, LLC on its sale to NV5 Global, Inc.

KippsDeSanto & Co. advises Axim Geospatial, LLC on its sale to NV5 Global, Inc.

KippsDeSanto & Co. is pleased to announce the sale of its client, Axim Geospatial, LLC (“Axim” or the “Company”), a portfolio company of Bluestone Investment Partners, to NV5 Global, Inc. (“NV5”), a public, leading provider of professional and technical engineering and consulting solutions.

Headquartered in Wisconsin, Axim’s 340 employees operate out of four offices and have delivered geospatial services in 180 countries and seven continents. Axim utilizes over 200 high-tech, proprietary geospatial tools to support repeatable, scalable, and efficient geospatial data production and presents opportunities for synergies associated with NV5’s high-altitude data acquisition capabilities.

Axim offers four core delivery models, which fuse deep geospatial expertise and high-tech-enabled solutions with proprietary software tools to address critical business and national security challenges, including Survey and Mapping, Enterprise GIS and Cloud Services, Critical Infrastructure and Security, and Business Solutions and Analytics to deliver customized solutions to meet clients’ critical business challenges.

Axim leverages it platinum partnerships with leading geospatial information systems (“GIS”) software platforms, Esri and Cityworks, and deep domain knowledge to deliver custom geospatial solutions and agile applications to its customers.

Axim has built enduring customer relationships characterized by ongoing and long-term mission support of funded programs which have solidified franchise positions with high-profile geospatial consumers across multiple markets, including the National Geospatial-Intelligence Agency (“NGA”) and the Department of Defense (“DoD”). Customers incorporate the Company’s geospatial solutions into critical programs supporting national security, emergency response preparedness, climate resiliency, and infrastructure protection.

The acquisition will further expand and diversify NV5’s customer base to include new federal, state and local government, and commercial clients, strengthen NV5’s leadership position in geospatial utility solutions, and presents opportunities for synergies associated with NV5’s high-altitude data acquisition capabilities.

This transaction highlights several key trends in the Enterprise and Government Technology markets as geospatial information and technologies have become a ubiquitous part of everyday services and are central to the business models of many digital disruptors:

  • Significant market demand for leading-edge, next-generation technologies at the confluence of cloud computing, geospatial data analytics, and machine learning that help improve business decision-making, performance, and operational efficiency
  • Robust public buyer activity and appetite for new technology and horizontal investments, particularly for companies with leading market positions that can serve as internal “centers of excellence”
  • Private equity activity in the market remains high as “buy-and-build” strategies continue to establish portfolio companies with strong industry fundamentals, reputation, and scale

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 Altamira on its sale to VAST, a portfolio company of ClearSky

KippsDeSanto & Co. advises Virginia Systems and Technology, Inc. on its sale to Altamira Technologies Corporation

KippsDeSanto & Co. advises Virginia Systems and Technology, Inc. on its sale to Altamira Technologies Corporation

KippsDeSanto & Co. is pleased to announce the sale of Virginia Systems and Technology Inc. (“VaST” or the “Company”) to Altamira Technologies Corporation, a McLean, VA based defense contractor. Altamira is owned by a ClearSky-led group that includes McNally Capital and Razor’s Edge Ventures.

Headquartered in Warrenton, VA, VaST provides end-to-end Tasking, Collection, Processing, Exploitation, and Dissemination (“TCPED”) mission coverage with the goal of increasing the efficacy of Signals Intelligence (“SIGINT”) missions for National Security customers. The Company uses its tip-of-the-spear SIGINT mission execution expertise to bridge the gap between operations and engineering disciplines within the Intelligence community.

Positioned at the forefront of Advanced SIGINT operations and capabilities, VaST delivers a superior TCPED process by informing key decision makers with trusted intelligence through a highly automated system, allowing for effective and efficient execution of customer missions. VaST’s model and operations continue to have an out-sized impact on new tradecraft, identifying emerging threats, defining new concepts of operation (“ConOps”), and implementing new capabilities through superior operations and engineering expertise

The combination of VaST with Altamira will further accelerate the combined entity’s SIGINT capabilities and adds depth to Altamira’s National Security customer portfolio.

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

  • Companies with high-end capabilities in support of National Security missions remain attractive targets given budgetary trends and focus on addressing near-peer threats
  • Buyers continue to place significant value on companies with deep customer intimacy and relationships across the Intelligence community
  • Financial sponsors with focused industry expertise and investment strategies continue to be active acquirors, particularly for companies with deep subject matter expertise, established customer relationships, and a highly skilled and experienced employee base

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

Press Release

Altamira Technologies Corporation Has Acquired VaST

Altamira Technologies Corporation today announced it has completed the acquisition of Virginia Systems & Technology, Inc. (VaST), a Warrenton, Virginia-based signals intelligence mission company.

“The acquisition of VaST brings new SIGINT capabilities and core National Security Customers to the Altamira portfolio” said Jane Chappell, CEO of Altamira. “VaST’s culture of marrying elite engineering with critical operations is a strong match with Altamira. We welcome them to the Altamira team.”

VaST, founded in 1999 on the principal of providing tip of the spear SIGINT mission execution expertise, implements a unique and innovative approach to the SIGINT mission by bridging the gap between Operations and Engineering with new capabilities. With the acquisition of VaST, Altamira adds new capabilities in end-to-end SIGINT tasking, collection, processing, exploitation, and dissemination (TCPED), National/Tactical SIGINT collaborative mission constellation management, and emerging threat identification.

“VaST is very excited to be joining such a like-minded company and looks forward to a combined opportunity to make larger and more impactful contributions to the defense of our nation” said Jay Hebert, President/CEO of VaST.

“We are excited about the combination of Altamira and VaST. Adding VaST’s capabilities to the Altamira platform should enable Altamira to grow faster with customers,” said Bernard Noble, Managing Director at ClearSky.

The acquisition adds talent in every SIGINT vertical including software developers, data scientists, operations specialists, mission integrators, and analysts to Altamira’s workforce.

Mintz served as legal advisor to Altamira. Holland & Knight served as legal advisor and KippsDeSanto & Co. served as financial advisor to VaST.

About Altamira

Altamira Technologies is a McLean, VA based defense contractor supporting critical defense and national missions for 20 years. Founded in 2003, Altamira has been a trusted partner providing expert-driven, data- accelerated analytic and engineering solutions for space, cyber, air, and intel missions.

About ClearSky

ClearSky is a venture capital/growth equity group that invests in innovative companies, with a special focus on (i) disruptive solutions for cybersecurity in information technology, industrial and critical infrastructure, and the defense industry, (ii) technologies driving the energy transition, climate related technologies, and sustainability, and (iii) the digital transformation of enterprise customers’ operations and communications.

KippsDeSanto & Co. advises Xcelerate Solutions on its investment from McNally Capital and Nio Advisors.

KippsDeSanto & Co. advises Xcelerate Solutions on its investment from McNally Capital and Nio Advisors.

KippsDeSanto & Co. is pleased announce that its client, Xcelerate Solutions (“Xcelerate” or the “Company”), has received an investment from McNally Capital (“McNally”).

Headquartered in McLean, VA, Xcelerate is a leading provider of comprehensive defense and end-to-end national security advisory services to the U.S. government.

The Company specializes in providing integrated security capabilities to identify, reduce, and mitigate enterprise risks for Defense, Federal Law Enforcement, and Intelligence Community customers. Specific offerings include personnel vetting, insider threat management, intelligence analysis, risk management, digital modernization, DevSecOps, process automation, policy development, project management, and business transformation.

Founded on September 11, 2009, Xcelerate has dedicated the past 13 years to building solutions, relationships, and programs focused on making America safer. The Company has established long-standing and growing relationships across mission-focused organizations such as the Defense Counterintelligence and Security Agency (“DCSA”), Defense Intelligence Agency (“DIA”), Federal Bureau of Investigation (“FBI”), and Defense Logistics Agency (“DLA”). By leveraging its capabilities and extensive subject matter expertise around critical national security programs, Xcelerate has developed a market-leading reputation.

The partnership with McNally will further enhance Xcelerate’s growth as the Company continues to deliver in-demand services and solutions across its core markets and expands into adjacent markets.

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

  • Significant demand for diversified national security capabilities and market expertise reinforced by a seasoned management team and highly skilled, experienced, and cleared employees
  • Buyers continue to place significant value on firms with key market presence, entrenched customer relationships, and significant revenue visibility supported by key large-scale programs
  • Financial sponsors continue to deploy capital into new government technology solutions platform investments 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

McNally Capital Announces Investment in Xcelerate Solutions

 McNally Capital and Nio Advisors Complete Platform Investment in Xcelerate Solutions, a Provider of End-to-End National Security Advisory Services

Chicago, IL – January 12, 2023 – McNally Capital (“McNally”), a lower middle-market private equity firm focused on founder and family-owned businesses, is pleased to announce an investment in Xcelerate Solutions (“Xcelerate”). Xcelerate is a leading defense and national security company, providing integrated solutions delivered through three service areas – Enterprise Security, Digital Transformation, and Strategic Consulting. McNally invested in Xcelerate out of McNally Capital Fund II, the firm’s committed buyout vehicle.

“Our partnership with Xcelerate aligns with our internal expertise in the Aerospace & Defense industry and our investment thesis in intelligence and national security,” said Michael P. Ember, Vice President at McNally Capital. “Xcelerate is a trusted partner to agencies directly responsible for the security and safety of the United States and has achieved exponential growth since its inception. We look forward to contributing to their continued growth through our new partnership.”

McNally Capital completed this transaction in line with its model of partnering with founder-owned companies, management teams, and industry experts to create value for its portfolio companies. McNally Capital partnered with Nio Advisors, LLC (“Nio”) in the acquisition of Xcelerate.

“I founded the business with one goal in mind: ‘To Help Make America Safer.’ Everything that we do is aligned toward that mission, and it’s why our organization exists,” says Mark Drever, CEO and Founding Partner of Xcelerate Solutions. “This partnership with McNally Capital and Nio Advisors aligns perfectly for us, particularly given their immense national security expertise. We are excited about the knowledge and significant continued growth McNally, Nio, and their strong network will contribute.”

Managing Partner and Founder of McNally Capital, Ward McNally, stated, “We are excited to partner with Xcelerate Solutions, and for the opportunities it brings to continue enabling growth for a founder-owned company. Given our industry expertise and ‘walked in your shoes’ approach, the partnership was a natural fit for both of us.”

McNally makes thesis-driven investments in the U.S. and targets founder- and management-owned companies. The firm partners in their investments with a bench of Industry Partners who provide incremental industry and operating knowledge and expertise. McNally focuses on investing in lower middle-market businesses with $5 to $20 million in EBITDA in the Aerospace & Defense, Industrial Products & Services, and Business Services industries. The firm is currently investing out of its committed buyout fund.

KippsDeSanto acted as the sole financial advisor, and PilieroMazza and McDonald Hopkins LLC acted as legal counsel to Xcelerate Solutions. Ropes & Gray LLP served as legal counsel to McNally Capital.

About McNally Capital

McNally Capital is a private equity firm targeting thesis-driven investments in the U.S., specifically founder and management-owned companies. Formed by the McNally family, who owned and operated Rand McNally & Company, McNally Capital is dedicated to upholding a 160+ year legacy as a family-owned and operated company. We look for businesses where flexible capital can provide a benefit to owners and management teams. Our mission is to harness the financial, intellectual, and human capital of our investor ecosystem to build value for our investors, management teams, and portfolio companies. For more information, please visit www.mcnallycapital.com.

About Xcelerate Solutions

Xcelerate Solutions is a leading defense and national security company, providing integrated solutions delivered through three service areas. We exist to manage risk from individuals to systems, create innovative solutions that deliver results, and accelerate time to value. Across our three service areas — Enterprise Security, Strategic Consulting, and Digital Transformation — we enhance the security and resilience of America’s personnel, physical, and cyber infrastructure. We are a trusted partner to Federal Law Enforcement, Department of Defense, and Intelligence Community agencies that are directly responsible for the security and safety of the United States. For more information, please visit www.xceleratesolutions.com.

CONTACT:

Beth Rahn, Principal & Head of Family Capital, (312) 357-3717, brahn@mcnallycapital.com

KippsDeSanto & Co. advises DLH Holdings Corporation on its acquisition of Grove Resource Solutions, Inc.

KippsDeSanto & Co. is pleased to announce the acquisition of Grove Resource Solutions, Inc. (“GRSi”) by its client, DLH Holdings Corporation (NASDAQ: DLHC) (“DLH” or the “Company”).

Headquartered in Atlanta, GA, DLH a leading provider of research and development, systems engineering and integration, and digital transformation solutions to federal agencies.

Founded in 2000, GRSi is a leading technology modernization company at the forefront of cloud, cyber, digital transformation, and innovative disruption driving modernization to mission-critical systems across the government. GRSi has established a strong brand within its core federal customer base, with considerable depth and breadth supporting the National Institutes of Health (“NIH”) and the U.S. Navy.

GRSi marks the fourth acquisition DLH has made since 2016, as the Company continues to target strategic assets that enhance its core competencies and strategic positioning. Notably, GRSi adds new customer domain expertise in national security markets, while strengthening the Company’s public health and life sciences footprint. In addition, GRSi brings added capabilities depth in high growth, transformative technology areas such as agile DevSecOps and cyber.

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

  • Consolidation of government contractors of scale in well-funded markets to drive mid-tier organic competitiveness
  • High-end, next-generation technologies continue to be highly coveted growth areas given their importance to winning large scale contracts that capitalize on budgetary tailwinds
  • Value continues to be placed on companies with established client relationships, strong past performance, and solid revenue visibility on prime, unrestricted contracts

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

DLH Strengthens Information Technology and Cyber Capabilities through Acquisition of GRSi

December 8, 2022

Broadens Digital Transformation and IT Modernization Solutions, Paving Way for New Growth Opportunities; Webcast and Conference Call on December 13

ATLANTA, Dec. 08, 2022 (GLOBE NEWSWIRE) — DLH Holdings Corp. (NASDAQ: DLHC) (“DLH” or the “Company”), a leading provider of research and development, systems engineering and integration, and digital transformation solutions to federal agencies, today announced that it has acquired privately-held Grove Resource Solutions, Inc. (“GRSi”) of Bethesda, Maryland.

The firm, with approximately 700 employees, provides a broad array of cloud-based enterprise modernization and cyber security solutions to numerous civilian and military federal agencies, most notably the National Institutes of Health (NIH), U.S. Navy (USN), and U.S. Marine Corps (USMC), among others.

“We are thrilled to begin a new era at DLH with the acquisition of GRSi,” said Zach Parker, DLH President and CEO. “Through this landmark transaction, we elevate our information technology and engineering capabilities, while adding the scale we need to thrive in an increasingly competitive marketplace. GRSi’s high-end IT and technical capabilities serving scientists, researchers, and system engineers have earned the company a reputation for excellence, and we expect that our unified organization will build upon those achievements to drive accelerated growth for DLH in the near- and long-terms. GRSi’s highly credentialed workforce features some the best and brightest technology leaders in our industry. We could not be more excited to welcome the entire team into the DLH family.”

GRSi was purchased for $185.0 million, or $157.9 million net of transaction-related tax benefits worth approximately $27.1 million on a net present value basis. The purchase price includes $178.0 million of cash and $7.0 million of equity. DLH estimates that GRSi will contribute annualized revenue of approximately $140 million to the Company going forward, and the firm’s backlog was approximately $550 million at closing. GRSi will be a wholly owned subsidiary of DLH Holdings Corp., and current GRSi key operations leaders are expected to remain with DLH in leadership roles.

“From culture and values, to market presence and capabilities, we believe that DLH is an ideal partner for GRSi,” added David Affeldt, President & CEO of GRSi. “Working with Zach and his team has reinforced our belief that this transaction will yield an impressive platform for achieving our joint objectives for years to come. DLH has the capabilities, customers, and culture that will enhance those of our own – resulting in a dynamic, improved provider of essential services to federal customers.”

DLH financed the acquisition through an amendment to its existing secured credit facility. First National Bank of Pennsylvania acted as agent, and F.N.B. Capital Markets, M&T Bank, and Atlantic Union Bank acted as joint lead arrangers. The credit facility was comprised of a syndicated term loan of $190 million and a revolving credit facility of $70 million. Additional terms of the transaction and financing arrangements will be available in the Company’s SEC filings.

Conference Call and Webcast

DLH will host a conference call and webcast for investors and analysts at 10:00 a.m. Eastern Time on December 13, 2022 during which members of senior management will review a presentation (already posted on the Company’s website) focused on the GRSi transaction. A question-and-answer session will follow. Interested parties may listen to the conference call via webcast or by dialing 888-347-5290 or 412-317-5256. A digital recording will be available for replay two hours after completion of the call and can be accessed on the DLH Investor Relations website or by dialing 877-344-7529 and entering conference ID 5841865.

Advisors

KippsDeSanto & Co. served as financial advisor to DLH. Holland & Knight, LLP and Becker & Poliakoff LLP served as legal advisors to DLH as part of this transaction. Baker Tilly, Lockton Companies, and Wolf Den Associates provided consulting services to DLH in connection with the acquisition. Baird served as financial advisor to GRSi.

About DLH

DLH (NASDAQ:DLHC) delivers improved health and readiness solutions for federal programs through research and development, systems engineering and integration, and digital transformation. The Company’s experts in public health, performance evaluation, and health operations solve the complex problems faced by civilian and military customers alike, leveraging digital transformation, artificial intelligence, advanced analytics, cloud-based applications, telehealth systems, and more. With over 2,500 employees dedicated to the idea that “Your Mission is Our Passion,” DLH brings a unique combination of government sector experience, proven methodology, and unwavering commitment to public health to improve the lives of millions. For more information, visit https://www.dlhcorp.com/.

About GRSi

GRSi is a federal services provider specializing in technology, business solutions, and research and engineering. For nearly 20 years, GRSi has provided innovative service solutions to meet the nation’s most pressing challenges. GRSi, named Maryland Tech Council’s Government Contracting Company of the Year for 2021, is an industry-leading professional technical and engineering services company delivering next-generation systems engineering, cybersecurity, technology insertion, and best practices-based Enterprise Operations management to federal, defense, intelligence, and commercial clients worldwide. Find out more at https://grsi.com/.

KippsDeSanto & Co. advises Synaptech, LLC on its sale to LMI, a portfolio company of Declaration Partners, Capitol Meridian Partners, and 22C Capital

KippsDeSanto & Co. advises Synaptech, LLC on its sale to LMI, a portfolio company of Declaration Partners, Capitol Meridian Partners, and 22C Capital

KippsDeSanto & Co. is pleased to announce the sale of Synaptech, LLC (“Synaptech” or the “Company”) to LMI, a portfolio company of Declaration Capital Partners, Capitol Meridian Partners, and 22C Capital.

Headquartered in Colorado Springs, CO, Synaptech is a technical solutions provider in the National Security industry, providing modern, proprietary software solutions to organize, educate, train, and equip future space warfighters to understand the battlefield and make key decisions with confidence, speed, and clarity.

The Company specializes in delivering cutting-edge operational planning, modeling, simulation, and decision-making software that serves as the connective tissue throughout the U.S. Space Force. Specific core offerings include modeling & simulation, software development, artificial intelligence, agile project management, operational analysis, and user centered designs and experiences. Additionally, the Company’s flagship proprietary software solution, Rapid Analysis and Prototyping Toolkit for Resiliency (“RAPTR”), provides scalable and efficient analysis in multiple mission areas to help visualize the space warfighting domain.

The partnership with LMI will further accelerate Synaptech’s growth as the needs of the Company’s in-demand capabilities and proprietary solutions across the Space Force expand.

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

  • High-end, next-generation technologies in support of National Security missions remain attractive targets given increasing budgetary trends and growth opportunities;
  • Continued investments in the space economy has had knock-on effects contributing to the value of the technologies that protect that investment; and
  • Buyers with explicit growth strategies, industry knowledge, and private equity backing continue to deploy capital, particularly for companies with deep domain and subject matter expertise, established customer relationships, and differentiated proprietary technologies

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

LMI Expands Presence in Space Industry By Acquiring Synaptech

— Modeling and simulation software company addresses growing space threats

— Synaptech’s space expertise complements LMI’s work with DoD

Tysons, Va. – LMI, a provider of technology-enabled management consulting, logistics, and digital & analytics solutions to the U.S. government, today announced it has acquired Synaptech, which creates digital engineering, modeling, and simulation software for the national security and space industries.

“LMI is thrilled to be entering the fast-paced, growing space market by acquiring Synaptech, which protects our nation’s national security assets and provides senior leaders with physics-backed decisional options,” said Doug Wagoner, LMI’s president and CEO.

Founded in 2015 and headquartered in Colorado Springs, CO, Synaptech is an innovator in space defense through its proprietary software: the Rapid Analysis and Prototyping Toolkit for Resiliency (RAPTR). RAPTR provides an extensive, scalable architecture for modeling, simulation, analysis, and visualization for the space warfighting domain, as well as cross-domain warfare integration.

LMI’s expertise in logistics, deep analytics and technology will complement Synaptech’s modeling and simulation strengths, better positioning both companies to innovate and support the missions of their respective Department of Defense customers.

“LMI and Synaptech share the same vision, culture, and passion for creating innovative, mission-focused solutions that make this partnership a perfect match. The combination of LMI’s incredible talent, resources, and rich history of proven performance throughout the DoD, and Synaptech’s knowledge and extensive experience in the space domain will yield tremendous results for our customers within the national security space industry for years to come,” said Zac Gorrell and Elias Peroulas, CEO, CTO and co-founders of Synaptech who will lead LMI’s space business moving forward. Mr. Wagoner said, “We are excited to welcome Synaptech’s employees, the best and brightest in the space industry, to the LMI team where they will find colleagues just as passionate about applying technology to solve our nation’s greatest challenges. Chartered by President Kennedy in 1961 at the dawn of the space race, it is fitting that LMI is now entering the space marketplace to support a renewed space race where adversaries seek to disrupt and disable our dominance in space.”

Wagoner also stated, “To help our customers innovate at the pace of need, one must understand all discreet and interdependent operational domains from the sea floor and sea surface, to ground, air, cyber, and space. The acquisition of Synaptech enables LMI total multi-domain awareness at scale.”

In addition to LMI’s 60-plus years of partnership with the federal government, Synaptech brings an expansive record of operating with speed and agility to efficiently integrate people, processes, and technologies to solve customers’ most complex challenges with an operationally relevant timeframe.

KippsDeSanto & Co. served as exclusive financial advisor to Synaptech.

About LMI

LMI is dedicated to powering a future-ready, high-performing government, drawing from expertise in digital and analytic solutions, logistics, and management advisory services. We deliver integrated capabilities that incorporate emerging technologies and are tailored to customers’ unique mission needs, backed by objective research and data analysis. Founded in 1961 under the Kennedy Administration to solve the government’s most complex problems, LMI continues to enable growth and transformation, enhance operational readiness and resiliency, and ensure mission success for federal civilian and defense agencies.

Media Contact 

Robin Milton

(703) 727-8517

wmilton@lmi.org

KippsDeSanto & Co. advises iNovex Information Systems Inc. on its strategic investment from Enlightenment Capital

KippsDeSanto & Co. advises iNovex Information Systems Inc. on its strategic investment from Enlightenment Capital

KippsDeSanto & Co. is pleased to announce the strategic investment in its client, iNovex Information Systems Inc. (“iNovex” or the “Company”), by Enlightenment Capital (“Enlightenment”).

Headquartered in Maryland, iNovex is a provider of full-stack software development solutions focused on cybersecurity, signals intelligence, data analytics, and robotic process automation for the Intelligence Community.  The Company builds and supports key systems of record that address complex mission requirements critical to national security and enable the full continuum of mission management from sensor to finished intelligence data.

Enlightenment’s knowledge and expertise in the government and technology vertical will help accelerate growth and investments in innovative products and services to build a mid-tier Intelligence Community focused platform with a mission to support critical National Security programs.

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

  • Companies providing cybersecurity and advanced data & analytics solutions for high-profile Intelligence Community customers remain highly coveted in the market;
  • Strong preference for firms with prime positions supporting unique and notable intelligence programs of consequence with significant backlog, long-term visibility, a highly cleared employee base and exemplary past performance;
  • Continued demand for companies that are poised to capitalize on key market growth drivers (e.g., full stack software development, cybersecurity, data & analytics, RPA, AI/ML, cloud, mission management); and
  • Robust financial sponsor activity and appetite for investments, particularly for companies with leading market positions, differentiated mission-focused tech-enabled services capabilities, enduring customer relationships, employee-centric culture, and proven leadership 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 

Columbia, Maryland – November 30, 2022:  Enlightenment Capital, an Aerospace, Defense, Government & Technology (ADG&T) investment firm based in the Washington, DC area, announced it has made a strategic investment in iNovex, a provider of software solutions, cybersecurity, Signals Intelligence (SIGINT), data analysis, and robotic process automation for the Intelligence Community (IC).

“This partnership provides iNovex with the financial and strategic resources needed to build a mid-tier Intelligence Community focused platform with a mission to support critical National Security programs,” said Jason Rigoli, Partner at Enlightenment Capital. “Gary Daigle (CEO) and Bob Phibbons (President) have built an impressive business, which is a recognized leader in the community, and we are thrilled to partner with them. We plan to continue to invest in the platform and drive growth – both organically and through strategic M&A – to put the company in a position to better support its customers.”

“Enlightenment is our ideal investment partner, and we are thrilled to join forces with them as they understand the sector and the critical mission needs of the national security community,” said Gary Daigle, CEO of iNovex. “Securing an investment partner is an important piece of iNovex’s strategy and will accelerate our investments aimed at enhancing our products and services, driving innovation, and introducing key relationships to strengthen iNovex and bring more value to our customers.”

“Enlightenment’s partnership will greatly benefit our customers and employees, building upon the past successes of iNovex,” said Bob Phibbons, President of iNovex. “Enlightenment’s reputation and experience supporting companies within the Intelligence Community creates an exciting pathway that enables us to accelerate our growth while preserving our company’s culture.”

About iNovex

Founded in 2005 and headquartered in Columbia, MD, iNovex provides software development, cybersecurity, Signals Intelligence (SIGINT), data analysis, and robotic process automation to solve our customers’ toughest mission challenges in the federal government and commercial sectors. For more information, visit www.inovexcorp.com and follow us at www.linkedin.com/company/inovexcorp.

About Enlightenment Capital

Enlightenment Capital, a Washington, DC area based private investment firm, provides flexible capital and strategic support to middle-market companies in the Aerospace, Defense, Government & Technology (ADG&T) sector. The firm partners with businesses that provide vital services, protect critical infrastructure, innovate cyber and data solutions, enhance decision making capabilities, engineer aerospace and space systems, safeguard national security, and endeavor to meet the challenges of today and tomorrow. For more information, visit www.enlightenment-cap.com and follow us at www.linkedin.com/company/enlightenment-capital.

KippsDeSanto & Co. Advises Agile Defense, Inc. on its sale to Enlightenment Capital

KippsDeSanto & Co. Advises Agile Defense, Inc. on its sale to Enlightenment Capital

KippsDeSanto & Co. is pleased to announce the sale of its client, Agile Defense, Inc. (“Agile Defense” or the “Company”) to Enlightenment Capital (“Enlightenment”).

Headquartered in Reston, VA, Agile Defense is an end-to-end enterprise IT solutions provider, delivering leading-edge digital transformation solutions at scale. The Company solves its customers’ critical challenges by leveraging a customized combination of advanced technology capabilities and tools including Cloud Services, DevSecOps, Cybersecurity, and AI / Automation. With 800+ technically proficient engineers and subject matter experts, Agile Defense has been critical in enabling IT transformations of large-scale, high-profile mission-essential programs, including multi-environmental upgrade projects and complex cloud-based initiatives.

Agile Defense has established embedded positions across the Department of Defense (“DoD”) over the last several decades and continues to grow and expand its presence within key agencies including the Army, Navy, Air Force, and Marine Corps. Enlightenmment’s extensive experience and knowledge in the government technology solutions market will help accelerate the Company’s growth through strategic acquisitions and organic contract pursuits.

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

  • Significant market demand for highly skilled engineers and subject matter experts, and in-demand capabilities such as cloud services and cybersecurity;
  • Strong demand for access to prime contract vehicles that enable digital transformation across the DoD;
  • Significant value attributed toward targets with highly differentiated technology offerings at scale; and
  • Continued private equity interest in government technology solutions targets that add immediate scale and customer access

 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

Enlightenment Capital acquires digital transformation solutions provider Agile Defense

November 16, 2022

Enlightenment Capital has acquired Reston, Virginia-based Agile Defense, a provider of digital transformation solutions to the Department of Defense and other federal customers. Terms of the deal were not disclosed.

Agile was founded in 1998.

Jay Lee serves as CEO of Agile

“Agile will serve as the foundation for Enlightenment’s newest platform, aimed at meeting the heightened demand by Federal customers for digital transformation and customized IT systems and operations,” said Devin Talbott, Founder and Managing Partner of Enlightenment Capital in a statement. “Jay Lee (CEO) has built an impressive business. We are thrilled to partner with him and the rest of the team to accelerate and augment the company’s development.”

Based in Chevy Chase, Maryland, Enlightenment Capital provides flexible capital and strategic support to middle-market companies in the Aerospace, Defense, Government & Technology (ADG&T) sector. The firm partners with businesses that provide vital services, protect critical infrastructure, innovate cyber and data solutions, enhance decision making capabilities, engineer aerospace and space systems, safeguard national security, and endeavor to meet the challenges of today and tomorrow.