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

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

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

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

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

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

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

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

Press Release

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

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

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

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

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

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

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

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

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

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

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

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

About KippsDeSanto & Co.

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

Press Release

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

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

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

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

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

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

About VT Group

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

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

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

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

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

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

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

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

 About KippsDeSanto & Co.

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

Red River Acquires CWPS

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

September 06, 2019 12:20 PM Eastern Daylight Time

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

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

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

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

About Red River

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

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

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

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

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

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

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

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

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

 About KippsDeSanto & Co.

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

Press Release – September 04, 2019

Dovel Technologies Acquires AceInfo Solutions

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

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

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

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

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

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

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

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

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

About Dovel Technologies

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

About AceInfo Solutions

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

 

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

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

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

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

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

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

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

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

Press Release

E3/Sentinel Announces Acquisition of Data Works, Inc.

August 1, 2019

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

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

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

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

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

About E3/Sentinel:

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

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

About NewSpring Holdings:

NewSpring Holdings, the dedicated, diversified holding company within NewSpring, with a strategy focused on control buyouts and platform builds, brings a wealth of knowledge, experience, and resources to take profitable, growing companies to the next level through acquisitions and proven organic methodologies. Founded in 1999, NewSpring partners with the innovators, makers, and operators of high performing companies in dynamic industries to catalyze new growth and seize compelling opportunities. The Firm manages approximately $1.7 billion across four distinct strategies covering the spectrum from growth equity and control buyouts to mezzanine debt. Partnering with management teams to help develop their businesses into market leaders, NewSpring identifies opportunities and builds relationships using its network of industry leaders and influencers across a wide array of operational areas and industries. Visit NewSpring at www.newspringcapital.com.

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

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

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

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

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

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

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

 About KippsDeSanto & Co.

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

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

July 24, 2019 10:56 AM Eastern Daylight Time

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

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

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

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

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

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

About Altamira

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

About ClearSky

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

About McNally Capital

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

KippsDeSanto & Co. advises Solers, Inc. on its sale to Peraton, a portfolio company of Veritas Capital

KippsDeSanto & Co. advises Solers, Inc. on its sale to Peraton, a portfolio company of Veritas Capital

KippsDeSanto & Co. is pleased to announce the sale of its client, Solers, Inc. (“Solers” or the “Company”), to Peraton, Inc. (“Peraton”).

Based in Arlington, VA, Solers is a leading provider of software development and systems integration for space situational awareness, satellite ground systems and operations, cybersecurity engineering, and enterprise cloud-based solutions.

Through a targeted, customer-centric growth strategy, Solers has developed meaningful relationships with various agencies spanning the Department of Defense (“DoD”) and Intelligence Community (“IC”).  Strong performance for these clients has led to both expanded work under existing contracts and referrals, allowing Solers to broaden its reach as a leader in software engineering and system integration.  Since its founding in 1998, one of Solers’ strongest assets has been its team of highly skilled employees. These employees’ domain knowledge and extensive certifications (over 75% cleared) afford Solers both subject matter expertise and make it an attractive place for others to work on challenging and mission-critical projects.

As Peraton’s second acquisition, Solers’ reputation and abilities will strengthen Peraton’s already robust space portfolio.

We believe this transaction demonstrates several key trends in the government services M&A market:

  • Space and National Intelligence continue to be highly coveted growth and M&A areas given budget and geopolitical security trends
  • Buyers are focusing on targets with entrenched customer positioning, including sole source contracts, longstanding incumbency, and customer intimacy, as well as well-funded customers and highly cleared mission-critical programs
  • Deep domain and subject matter expertise, particularly when coupled with long-term relationships, are critical differentiators for sellers in a crowded M&A market
  • With today’s robust capital markets, private equity – via new platforms and add-ons to existing portfolio companies – are successfully competing against larger public strategics for even the most attractive assets

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

Press Release

PERATON TO ACQUIRE SOLERS, INC.

Acquisition establishes Peraton as the premier solutions provider across the growing space protection and resiliency market

Herndon, VA, June 17, 2019 – Peraton, a portfolio company of Veritas Capital, has entered into a definitive agreement to acquire Solers, Inc., a leading provider of software development and systems integration for space situational awareness, satellite ground systems and operations, cybersecurity engineering, and enterprise cloud-based solutions.

“The acquisition of Solers represents an important step in the execution of our growth strategy and serves as a true force multiplier for Peraton and our customers. By bringing together some of the most proven and innovative space protection and ground operations technologies in the industry, we will be able to significantly enhance our ability to execute on our customers’ critical missions,” said Stu Shea, Chairman, President and CEO of Peraton. “I’m excited to welcome the talented Solers team to Peraton, strengthening our already robust space portfolio, technical excellence and rapid innovation capabilities.”

The Solers acquisition will accelerate both near- and long-range growth opportunities and enhance Peraton’s ability to deliver highly differentiated space protection and resiliency solutions that directly support mission objectives and critical national security initiatives. The combined capabilities will enable Peraton to expand its offerings of innovative and agile end-to-end solutions that address the growing complexity of customer mission needs across both national security and civilian agency space & ground programs.

“The Solers/Peraton alignment is truly a strategic fit and I have full confidence that the combined companies will continue Solers trademark high quality support to our government clients,” said David Kellogg, President and CEO of Solers. “Through our combination with Peraton – a company with whom we have many shared values – our customers will have access to some of the best people and technologies available to address their critical missions and our employees will benefit from greatly expanded growth opportunities as part of this new company.”

“Peraton’s transformational acquisition of Solers will accelerate the company’s presence in the high-priority, emerging space and communications markets,” said Ramzi Musallam, CEO and Managing Partner of Veritas Capital. “This combination will create a differentiated platform, strengthening Peraton’s ability to provide mission-critical services and solutions to its dynamic customer base.”

Investment bank KippsDeSanto acted as the financial advisor to Solers for this acquisition. Macquarie Capital acted as financial advisor to Peraton.

About Peraton

Peraton provides innovative, reliable solutions to the nation’s most sensitive and mission-critical programs and systems. As a trusted provider of highly differentiated space, intelligence, cyber, defense, homeland security, and communications capabilities, Peraton is a critical partner to the Intelligence Community, Department of Defense, and select federal agencies and commercial entities. Headquartered in Herndon, Virginia, the company employs more than 3,000 people across the U.S. and Canada. For more information on Peraton, visit www.peraton.com.

About Veritas Capital

Veritas Capital is a leading private equity firm that invests in companies that provide critical products and services, primarily technology and technology-enabled solutions, to government and commercial customers worldwide, including those operating in the aerospace & defense, healthcare, software, national security, communications, energy, government services and education industries. Veritas seeks to create value by strategically transforming the companies in which it invests through organic and inorganic means. For more information on Veritas Capital and its current and past investments, visit www.veritascapital.com.

 About Solers, Inc.

Founded in 1998, Solers is an innovative information technology solutions provider to the Department of Defense, Intelligence Community, other federal agencies, and commercial customers. With core capabilities in systems engineering, systems integration, space protection and resiliency, satellite ground systems, cloud computing, cyber engineering, and data engineering, Solers directly supports customer mission objectives and critical national security imperatives. For more information on Solers, visit www.solers.com.

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

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

 KippsDeSanto & Co. is pleased to announce the sale of Connexta, LLC (“Connexta” or the “Company”) to Octo, a portfolio company of Arlington Capital Partners.

Headquartered in Phoenix, AZ, Connexta is a leading provider of open source software solutions for global Intelligence, Surveillance, and Reconnaissance (“ISR”) data interoperability needs across the Department of Defense (“DoD”), Intelligence Community (“IC”), and international coalition partners.  Leveraging established past performance coupled with intimate domain knowledge and expertise in modular, open source technologies, Connexta solves complex challenges for multi-domain ISR missions requiring aggregation, analysis, and dissemination of intelligence from a diversified data ecosystem that is geographically dispersed and siloed.  Connexta employs approximately 130 personnel consisting primarily of full-stack and cloud engineers proficient in agile methodologies, industry certifications, and requisite security clearances.

The combination of the two firms allows Octo to be the go-to expert in data interoperability and user interface arenas for geospatial search and discovery solutions and combat systems. Octo’s acquisition of Connexta serves to expand capabilities and expedite delivery and data integration of combat systems across the Armed Forces and enhance Humanitarian Assistance and Disaster Relief tools for key customers in the National System for Geospatial Intelligence.  This transaction also provides Octo significant international reach through contracts supporting strategic coalition partners in Europe, Asia, and Australia.

Connexta will provide product offerings that augment Octo’s existing capabilities.  This comprehensive portfolio of product offerings coupled with differentiated services will broaden the combined entity’s customer footprint to reach currently untapped agencies and international allies with adjacent mission requirements and technical challenges that would benefit from the value-add the combined company now delivers.

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

  • Continued demand for high-growth DoD and IC-oriented firms with sustainable profitability;
  • High demand for targets having demonstrated proficiency in leveraging proprietary technologies and unique product offerings to offer highly differentiated technology-enabled solutions;
  • Acquirers continue to attribute strong value to companies with entrenched and defensible positions with key, hard-to-penetrate customers on mission-critical programs; and
  • Increasing M&A activity by private equity – via new platforms and add-ons to existing portfolio companies

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

Press Release

Octo Acquires Connexta to Enhance Open Source Software Development Capabilities

July 23, 2019

RESTON, Va. – Octo, a premier provider of next-generation services for the Federal market, today announced its acquisition of Connexta, a Phoenix, Arizona-based global leader in open source software development and secure discovery solutions for government and commercial customers. With this acquisition, Octo significantly bolsters its existing client base in the Intelligence Community (IC) and the Department of Defense (DoD), particularly the Air Force and its innovative software labs. Connexta’s substantial capabilities will expand Octo’s open source and Agile software development, cloud engineering, data interoperability, geospatial intelligence (GEOINT), and C4ISR offerings. The combination of the two firms establishes Octo as go-to experts in the data interoperability, API, and user interface arenas for geospatial search and discovery solutions and combat systems. The expanded capabilities Octo will realize through this acquisition will expedite delivery and data integration of combat systems across the Armed Forces and enhance Humanitarian Assistance and Disaster Relief tools for key customers in the National System for Geospatial Intelligence (NSG). This transaction also significantly enhances Octo’s sensor integration capabilities, to include support for several of the nation’s “Five Eye” partners.

Connexta will operate as a wholly owned subsidiary of Octo. The integration will provide U.S. Federal Government customers expanded access to Connexta’s solution offerings including its Distributed Data Framework, a powerful geospatially-enabled search and integration platform, and Alliance, a system for enterprise ISR data sharing. These tools promote collaborative use of discovered data by analysts to produce enhanced ISR products. The integration of Octo and Connexta systems will unlock new levels of data sharing and analysis for agency leaders, and the combined technical talent will offer customers a deep and sophisticated team capable of taking on much larger and complex mission system modernization projects than Octo has previously supported.

“This acquisition is a huge win for both firms. There are enormous synergies in our talent, culture, and solutions that will enable us to drive immediate value across our collective customer base,” said Mehul Sanghani, Chief Executive Officer of Octo. “Connexta’s two solution offerings lie at the heart of the ISR integration and GEOINT search and retrieval capabilities that are in use across many of our DoD and IC customers, and that have been increasingly embraced by our allied partners. Perhaps equally important, we’re both Agile and modern technology firms at our core with remarkably similar cultures. We’re adding a team that shares the same commitment to customer success that we do, and we’re only going to enhance these qualities as we integrate. Connexta’s culture also dovetails perfectly with Octo’s, which will only help make integrating our two firms smoother and allow us to maintain our unique culture in the marketplace.”

“Combining Connexta’s capabilities and services with Octo’s deep market knowledge will drive exponential value and impact for our combined customers,” said Andy Goodson, Chief Executive Officer at Connexta. “Our product offerings augment their services capabilities. Their broader customer base opens up new avenues for agencies to leverage our products. Additionally, we committed to our Connexta employees that we would place culture as a top priority in this process, just as Octo did. We knew very early on in the process that we had found a perfect match in Octo. We look forward to joining forces to provide more innovative, Agile solutions for both Octo’s and Connexta’s customers.”

Through this acquisition, Octo adds roughly 130 personnel to its roster, primarily full-stack and cloud engineering resources. Octo now offers nearly 700 technologists to support and accelerate modernization efforts across its entire public sector customer base. Octo maintains a heavy presence in the DC Metropolitan area with offices in Reston and Alexandria, Virginia and Columbia, Maryland, and has presences in Richmond, Boston, Dayton, and St. Louis. The acquisition of Connexta adds offices in Boston, Denver, and Phoenix and makes Octo a firm with international reach through contracts supporting strategic coalition partners in Europe, Asia, and Australia.

KippsDeSanto & Co. served as the exclusive financial advisor to Connexta during this transaction.

About Octo

A premier provider of technology solutions, Octo empowers federal agencies to modernize faster. Octo’s combination of technical innovation and pragmatic execution unleashes new capabilities, bolsters security, and transforms service delivery. Octo specializes in scalable Agile software development, user experience design, and cloud engineering solutions to improve, modernize, and optimize government IT systems. Known for challenging the status quo and continually exploring new ways to deliver value, Octo’s superior outcomes are the result of a collaborative, analytical approach and customer partnerships. Headquartered in Reston, Virginia, Octo builds flexible solutions that evolve as missions change, delivering results that last. Octo is an Arlington Capital portfolio company. www.octoconsulting.com.

About Connexta

Connexta is a software development company delivering enterprise integration services to government and commercial customers globally. Connexta develops secure, distributed intelligence processing capabilities, breaking down proprietary restrictions to enable information sharing.  Connexta is headquartered in Phoenix, AZ, USA with operations in Colorado, Massachusetts, and the Washington DC metro area. www.connexta.com.

 

KippsDeSanto & Co. advises JANUS Research Group on its recapitalization by CM Equity Partners

KippsDeSanto & Co. advises JANUS Research Group on its recapitalization by CM Equity Partners

KippsDeSanto & Co. is pleased to announce the recapitalization of its client, JANUS Research Group (“JANUS” or the “Company”), by CM Equity Partners (“CMEP”).

Based in Evans, GA, JANUS is a 350-person U.S. Federal services company providing engineering services as a solution, primarily for the U.S. Army and other Department of Defense (“DoD”) customers.   JANUS centers of gravity are in Programmatic Services, Futures Research, Study and Analysis, Modeling & Simulation, Live and Virtual Training, Mission Command / Tactical Communications, Distributed Simulation / Experimentation, Specialty Engineering, Data Management, and Software Development.

The Company has established a foundational presence in its Augusta-Fort Gordon Cyber District marketplace, as well as considerable depth within the Command, Control, Communications, Computers Intelligence, Surveillance, and Reconnaissance (“C4ISR”) Center of Excellence located in Aberdeen Proving Ground (“APG”), and has closely aligned itself with DoD customers looking to grow investments in systems engineering, cyber, training, and technology innovation.  JANUS has leveraged its extensive operational expertise, past performance, and technological know-how as a leading provider to mission-critical tactical communications programs to include more than 20 years supporting the U.S. Army Program Executive Office for Command, Control, and Communications-Tactical (“PEO C3T”) under the Project Manager Tactical Radio (“PM TR”) and Project Manager Tactical Network (“PM TN”) organizations.  The Company is also positioned at the forefront of next generation tactical and strategic defense and intelligence capability requirements through support of Army Futures Command, Future Concepts Center, and Joint Modernization Command (“JMC”), amongst others.

Jeannette Loop, JANUS Founder and Chairperson, stated that she and her management team are pleased to be partnering with CM Equity “whose vision is aligned with our growth strategy and have sufficient scale, experience and capabilities to grow with us over time.”

We believe this transaction demonstrates several key trends in the government services M&A market:

  • Keen market focus on differentiated engineering, analytic, and programmatic services mission support for well-funded government customers
  • Deep domain and subject matter expertise, particularly when coupled with long-term relationships, are critical differentiators for sellers in a crowded M&A market
  • Private equity firms continue to remain highly active in the government services market, given strong market dynamics and favorable credit markets

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

Press Release

CM EQUITY PARTNERS ANNOUNCES THE RECAPITALIZATION OF JANUS RESEARCH GROUP, INC.

New York, June 12, 2019 – CM Equity Partners (“CMEP”) together with the Company’s founders and management, announce the recapitalization of JANUS Research Group, Inc. (“JANUS” or the “Company”).  JANUS, headquartered in Evans, Georgia and founded in 1997 by Chairwoman Jeannette Loop, is a 350 person U.S. Federal services company providing engineering services as a solution, primarily for the U.S. Army and other Department of Defense (“DoD”) customers.   JANUS centers of gravity are in Programmatic Services, Futures Research, Study and Analysis, Modeling & Simulation, Live and Virtual Training, Mission Command/Tactical Communications, Distributed Simulation/Experimentation, Specialty Engineering, Data Management, and Software Development.

Jeannie and Tony Loop will be members of the Board, with Ms. Loop continuing in her role as Chairwoman of JANUS.

JANUS will operate as a stand-alone company and will continue to be led by John Dewey as Chief Executive Officer and Rob Elich as Chief Operating Officer.

“We are excited to partner with CMEP to continue to build on the brand and legacy that we have built over the past 22 years” said Jeannie and Tony Loop.

John Dewey, CEO, said “We are looking forward to JANUS continuing to support our customers, providing them with lasting solutions to their most complex challenges, as we grow and broaden our business while maintaining the same culture and commitment to JANUS’s highly skilled employees and partners”.

About JANUS Research Group

JANUS (www.janusresearch.com) is an industry leader in Programmatic Services, Futures Research, Study and Analysis, Modeling & Simulation, Live and Virtual Training (with haptic feedback), Mission Command/Tactical Communications, Distributed Simulation/ Experimentation, Specialty Engineering, Data Management, and Software Development, primarily to the U.S. Army and other DoD customers.

About CM Equity Partners

CM Equity Partners (www.cmequity.com), based in New York, NY, provides capital to the Federal services and aerospace and defense industries.  For nearly thirty years, CMEP has partnered with management teams to build value by leveraging its long-standing industry knowledge, relationships, operating experience, and its corporate finance, M&A, and private equity expertise.  CMEP provides an active and collaborative management approach to its investments, developing long-term strategic plans and supporting re-investment of profits to grow and broaden a company’s revenue base and capabilities. CMEP’s investments are structured with flexibility across a broad spectrum of the capital structure, including equity, structured equity and mezzanine debt. CMEP is associated with Carl Marks & Co. (www.carlmarks.com). ​

KippsDeSanto & Co. Advises DLH Holdings Corporation on its Acquisition of Social & Scientific Systems

KippsDeSanto & Co. Advises DLH Holdings Corporation on its Acquisition of Social & Scientific Systems

 KippsDeSanto & Co. is pleased to announce the acquisition of Social & Scientific Systems (“SSS”) by its client, DLH Holdings Corporation (“DLH” or the “Company”).

Headquartered in Atlanta, GA, DLH is a leading provider of innovative healthcare services and solutions to federal agencies.  The Company’s core competencies include assessment and compliance monitoring, business process outsourcing, health information technology systems integration, management, readiness and medical logistics, and pharmacy solutions.

Founded in 1978, SSS, is an experienced public health organization that provides scientific research, policy, and program evaluation to leading federal health customers.  SSS has established a strong brand within its core federal health customers and maintains a high degree of embeddedness supporting longitudinal public health studies that have spanned multiple decades.

Building off DLH’s successful acquisition of Danya in 2016, SSS adds further domain expertise (public health and life sciences), additional capabilities depth (data analytics, advanced research and IT), and scale.  SSS’ differentiated expertise, coupled with DLH’s existing business, strategically aligns to enhance the combined businesses’ organic growth across the fast-growing, multibillion-dollar federal healthcare market.

We believe this investment demonstrates several key trends in the healthcare M&A market:

  • Consolidation of government contractors of scale in niche, well-funded markets to drive mid-tier organic competitiveness
  • Value continues to be placed on companies with established client relationships, strong past performance, and solid revenue visibility on prime, unrestricted contracts
  • Attractiveness of deeply embedded and longstanding positions on well-funded programs

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

Press Release

DLH Announces Acquisition of Social & Scientific Systems

ATLANTA, June 10, 2019 /PRNewswire/ — DLH Holdings Corp. (NASDAQ: DLHC) (“DLH” or the “Company”), a leading provider of innovative healthcare services and solutions to federal agencies, today announced that it has acquired privately-held Social & Scientific Systems (“SSS”) of Silver Spring, Maryland. The firm, with approximately 400 employees, is a leading public health service organization providing solutions in clinical and biomedical research, epidemiology, health policy, and program evaluation. SSS utilizes advanced research (including longitudinal studies), data analytics, and secure IT platform services to assist mission-critical public health agencies within the Department of Health & Human Services – including the National Institutes of Health (NIH) and the Centers for Medicare and Medicaid Services (CMS) – along with other healthcare-related institutions.

SSS was purchased for $70 million in cash, or $63 million net of transaction-related tax benefits worth $7 million on a net present value basis. DLH estimates that SSS will contribute approximately $65 million, on an annualized basis, to revenue of the Company going forward. The SSS backlog was approximately $346 million at closing, reflecting the long-term nature of its research and studies contracts. The funded component of acquired backlog was approximately $40 million. SSS will operate as a wholly-owned subsidiary of DLH Holdings Corp. and will be led by Kevin Beverly, its current President.

“This is an exciting addition to DLH and one that aligns perfectly with our strategy to expand the Company’s Public Health & Life Sciences focus area, diversifying our portfolio and bringing scale to support growth. In addition, we’ll augment our executive team with the high caliber leadership demonstrated by Kevin Beverly,” said Zachary Parker, DLH President & CEO. “With over 40 years in business, SSS is a nationally-recognized technology-enabled health research organization that collects, manages, and analyzes large-scale health data in support of critical public initiatives – complementing and broadening the markets we serve within the federal government.”

“I’m very pleased that SSS has found, in DLH, a great partner with which to continue delivering high quality health policy, data analytics, and public health services to federal agencies,” added Kevin Beverly, President of SSS. “Not only does DLH share a similar vision and corporate culture, but the Company is dedicated to improving the lives of citizens across the US and around the world. DLH has a reputation for providing a disciplined approach to achieving excellent customer service – including CMMI and ISO certifications – and valuing its employees. I look forward to working with Zach and his team as part of this dynamic new enterprise.”

DLH financed the acquisition through a new 5-year, $95 million, secured bank credit facility. First National Bank of Pennsylvania acted as agent, and F.N.B. Capital Markets and M&T Bank acted as joint lead arrangers. The facility is comprised of a syndicated term loan of $70 million and revolving credit facility of $25 million. The acquisition price and transaction expenses were funded by the term loan plus cash reserves of DLH, with the revolver available to support future cash needs. The interest rate applicable to borrowings is LIBOR plus a spread, based on the consolidated leverage ratio of DLH; at closing, the interest rate was 6.42%. Additional terms of the transaction and financing arrangements will be available in the Company’s SEC filings.

Advisors

KippsDeSanto & Co. served as financial advisor to DLH. Hogan Lovells US, LLP and Becker & Poliakoff LLP served as legal advisors to DLH as part of this transaction. The Avascent Group, Baker Tilly, and the Lockton Companies provided consulting services to DLH in connection with the acquisition.

Houlihan Lokey served as financial advisor to SSS; Saul Ewing Arnstein & Lehr, LLP served as legal advisor to SSS.

Conference Call and Webcast to be Held July 2, 2019

DLH management will discuss the acquisition of SSS on a conference call beginning at 10:00 a.m. Eastern Time on Tuesday, July 2, 2019. Interested parties may listen to the conference call by dialing 888-347-5290 and providing the operator with the conference ID 10132176. Presentation materials will also be posted on the Investor Relations section of the DLH website prior to the commencement of the conference call.

A digital recording of the conference call will be available for replay two hours after the completion of the call and can be accessed on the DLH Investor Relations website or by dialing 877-344-7529 and entering the conference ID 10132176.

About DLH

DLH (NASDAQ:DLHC) serves federal government clients throughout the United States and abroad delivering technology enabled solutions in key health and human services programs. The Company’s core competencies and consulting services include assessment and compliance monitoring, program management, health IT systems integration, data analytics, medical logistics, and pharmacy solutions. DLH has over 1,600 employees serving numerous government agencies. For more information, visit the corporate website at www.dlhcorp.com.

About Social & Scientific Systems

Social & Scientific Systems, based in Silver Springs, MD, is a public health research organization providing solutions in clinical and biomedical research, epidemiology and public health research, health policy, and program evaluation. The company, with approximately 400 employees, has offices in Durham, NC and Kampala, Uganda and was founded in 1978. Additional information can be found at www.s-3.com.