KippsDeSanto & Co. is pleased to announce the acquisition of our client, ASM Research, Inc. (“ASM” or the “Company”), by Accenture Federal Services (“Accenture”), a subsidiary of Accenture plc.  The acquisition of ASM will enable Accenture to expand its high-end service offerings in key Department of Defense (“DoD”) and Department of Veterans Affairs (“VA”) customer bases, as well as better support customers across North America in its growing healthcare business.

Headquartered in Fairfax, VA, ASM is an industry-leading provider of advanced information solutions and services to U.S. Defense and Federal health customers.  With over 30 years of experience serving the U.S. government, the Company has developed deep expertise in health Information Technology (“IT”), cybersecurity, data analytics, cloud computing, data warehousing, human capital management and benefit solutions, and agile software development.  For many of its major programs, including the Army Training Requirements and Resources System (“ATRRS”), the premier training management system for the U.S. Army, ASM developed the original system and continues to provide technology insertions, enhancements, and support services to the programs that remain mission critical to this day.

ASM has also become a key member of the VA’s Transformation Twenty-One Total Technology (“T4”) acquisition program, during a time when the VA continues to invest heavily in health IT solutions.  As a prime contractor on the T4 indefinite delivery, indefinite quantity (“IDIQ”) vehicle, ASM is playing a central role in supporting the VA’s IT modernization efforts with a specific focus on application and software development.  Through the partnership with Accenture, ASM expects to deliver even greater value to the VA, as well as identify further avenues for growth, as Accenture’s global healthcare business serves a global client base in the payer, provider, and public health sectors in more than 20 countries.

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

• Strong buyer appetite for companies well-positioned within mission-critical programs, and oriented toward those market segments anticipating strong future growth, such as health IT and big data
• Buyers seek targets on the front-end of key contract vehicles and programs that provide strong revenue visibility and organic growth potential
• Strategic buyers continue to see M&A as a primary avenue to fill gaps in contract, capabilities, and customer bases
• Buyers continue to seek targets with a strong growth potential evidenced by a robust, actionable pipeline supported by a highly-sophisticated, mature, professional infrastructure able to scale alongside growth

KippsDeSanto & Co. is an investment bank focused on delivering exceptional M&A and financing transaction results for leading technology and defense companies. For more information on KippsDeSanto & Co., please visit www.kippsdesanto.com.

We welcome the opportunity to discuss how KippsDeSanto & Co. can help you achieve your strategic objectives.

PRESS RELEASE

Accenture Completes Acquisition of ASM Research to Expand U.S. Defense and Federal Health Business

Arlington, Va. – Sept. 18, 2013 – In a move to strategically expand its U.S. defense business in the growing military health market, Accenture Federal Services (AFS) has completed its acquisition of ASM Research. ASM Research, an Accenture Federal Services Company, is a wholly owned subsidiary of AFS. Terms of the transaction were not disclosed.

With the acquisition, Accenture expands the offerings and value it provides to U.S. Department of Defense (DoD) and Veterans Affairs (VA), delivering compelling clinical benefits and business solutions to federal defense and military health agencies experiencing a once-in-a-generation modernization. These clients will benefit from deep mission knowledge, experience in providing electronic health records, healthcare integration, interoperability and commercial best practices that ASM, together with AFS, are uniquely qualified to address.

“Transforming healthcare at the federal level requires close alignment with the private sector, as much of the healthcare for active duty and retired service members comes from private companies,” said Jim Traficant, president of ASM Research and a managing director at Accenture Federal Services. “Our combined expertise in technology, healthcare, systems infrastructure, and mission knowledge uniquely positions us to meet the government’s ‘healthcare readiness’ challenge.”

ASM Research, an Accenture Federal Services Company, is headquartered in Fairfax, Va., and has more than three decades of government experience and expertise in healthcare IT, information solutions and services, data analytics, cloud, data warehousing, human capital management and benefit solutions and agile software development.

Accenture Federal Services is a U.S. company, with offices in Arlington, Va., and is a wholly owned subsidiary of Accenture LLP. Accenture’s federal business serves every cabinet-level department and 20 of the largest federal organizations with clients at defense, intelligence, public safety and civilian agencies.

Learn more about Accenture’s work with federal agencies, its Insight Driven Health, its global defense work and its global program, Delivering Public Service for the Future.

About Accenture

Accenture is a global management consulting, technology services and outsourcing company, with approximately 266,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$27.9 billion for the fiscal year ended Aug. 31, 2012.

KippsDeSanto & Co. is pleased to announce the sale of NEK Special Programs Group (“NEK SPG”), the Special Operations Forces (“SOF”) training business of our client, NEK Advanced Securities Group Inc., to Cubic Corporation (“Cubic”).  The transaction expands Cubic’s national security business with respect to advanced tactical training, surveillance and counter surveillance, mission planning, and personnel recovery, providing access and placement to a coveted and difficult-to-penetrate customer set.

With significant operations in Colorado Springs, CO, and Fayetteville, NC, NEK SPG provides highly specialized, mission-critical training in support of the four component commands of United States Special Operations Command (“USSOCOM”), the Joint Special Operations Command (“JSOC”), select Theater Special Operations Commands (“TSOCs”), and a variety of intelligence community customers.  NEK SPG provides hands-on, practical training, tailored for personnel involved in highly stressful and hostile environments, creating an unparalleled training environment that simulates real-world Unconventional Warfare (“UW”) activities.  The Company delivers comprehensive programs and services that utilize a full spectrum of commercial and government sector assets to address the increasing demand for UW, Counterterrorism, and Counterinsurgency training required by SOF, the Department of Defense (“DoD”), and other elements of the U.S. Government.  NEK SPG’s broad portfolio of capabilities, coupled with extensive operational experience within the key components of USSOCOM, allows for unique visibility and understanding of emerging mission requirements at a tactical, operational, and strategic level.  We believe this transaction demonstrates several key trends in the aerospace/defense and government services M&A environment:

• Highly specialized solutions providers in mission-critical areas remain in high demand despite overall budget and funding environment concerns
• Shifting budgetary allocations and pressures continue to prompt companies to supplement growth through strategic acquisitions within priority pockets of budget funding (e.g. SOF)
• Strategic buyers continue to target M&A opportunities that address strategic gaps or augment an existing presence with specialized solutions that cannot be easily replicated internally

KippsDeSanto & Co. is an investment bank focused on delivering exceptional M&A and financing transaction results for leading technology and aerospace/defense companies. For more information on KippsDeSanto & Co., please visit www.kippsdesanto.com.

We welcome the opportunity to discuss how KippsDeSanto & Co. can help you achieve your strategic objectives. For more information on this particular transaction, please contact one of the deal team leaders below.

PRESS RELEASE

Cubic Corporation Acquires Assets of NEK Advanced Securities Group

Purchase will expand company’s national security business 

SAN DIEGO, California – December  17, 2012 Cubic Corporation (NYSE: CUB) has acquired from NEK Advanced Securities Group, Inc. the operating assets of its NEK Special Programs Group, LLC subsidiary, their Special Operation Forces training business based in Fayetteville, NC and Colorado Springs, Colo. The all-cash transaction closed on December 14, 2012 with a total consideration of $52 million subject to the terms of the purchase agreement.

The assets are being acquired by NEK Services, Inc., a wholly owned subsidiary of Cubic Corporation, and will operate under the leadership of Jim Balentine, President of Cubic Mission Support Services.  The more than 200 highly skilled and experienced operational and technical experts of NEK’s Special Operations Forces training business will become employees of Cubic and significantly expand the company’s current knowledge base in advanced tactical training, surveillance /counter surveillance, mission planning, and personnel recovery.

“The NEK acquisition will help solidify and expand Cubic’s highly specialized, mission critical capabilities focused on the national security market,” said Jay Thomas, Senior Vice President of Finance and Corporate Development for Cubic Corporation. “NEK is one of the few private contractors specializing in mission critical training and direct support activities for the United States Special Operations Command, Joint Special Operations Command and Theater Special Operations Command units,” he added.

“NEK is recognized for its record of unmatched experience and achievement in support of the Special Operations Forces community,” Jim Balentine, President of Cubic Mission Support Services said. “We see many synergies associated with Cubic’s breadth of technologies and service offerings, and expect to further expand our business through these combined resources. This acquisition is in line with the Pentagon’s strategic goal of increasing special forces training to meet the needs of reduced military spending,” he said.

NEK is a leading provider of advanced and specialized courses for the United States Special Operations Command.  The leadership team consists of former Special Forces specialists averaging over 20 years of experience. Two key members of NEK’s senior leadership team, Bo Todd and Jeff Keers have been named as executives of the new Cubic subsidiary.  NEK Advanced Securities Group founders and Chief Executive Officers Bruce Parkman and Tony Porterfield will support the continued success of NEK Services, Inc. by serving as consultants to Cubic.

“By selling our NEK Special Programs Group subsidiary to Cubic, NEK has found a great company to carry on our history of providing our country’s elite service personnel with exceptional training and support,” said Tony Porterfield.  “Bruce and I look forward to helping Cubic continue to grow the Special Operations Forces business knowing that our dedicated and unparalleled employees will be well taken care of as part of the Cubic family of companies.”

Cubic’s Mission Support Services business unit employs approximately 4,400 employees worldwide. Mission Support Services employees assist clients in both training and operational environments. Their support of real-world events have helped prepare U.S. and allied forces to meet the full scope of mission requirements from large-scale combat to peacekeeping and humanitarian relief operations. Cubic’s current customers include the U.S. Department of Defense, all U.S. armed services, the Department of Homeland Security and selected allied nations.

Cubic Corporation is the parent company of three major business segments: Defense Systems, Mission Support Services and Transportation Systems. Cubic Defense Systems is a leading provider of realistic combat training systems, cyber technologies, asset tracking solutions, and defense electronics. Mission Support Services is a leading provider of training, operations, maintenance, technical and other support services. Cubic Transportation Systems is the world’s leading provider of automated fare collection systems and services for public transit authorities. For more information about Cubic, see the company’s Web site at www.cubic.com.

Cubic Corporation is the parent company of three major business segments: Defense Systems, Mission Support Services and Transportation Systems. Cubic Defense Systems is a leading provider of realistic combat training systems, cyber technologies, asset tracking solutions, and defense electronics. Mission Support Services is a leading provider of training, operations, maintenance, technical and other support services. Cubic Transportation Systems is the world’s leading provider of automated fare collection systems and services for public transit authorities. For more information about Cubic, see the company’s Web site at www.cubic.com.

KippsDeSanto & Co. is pleased to announce the acquisition of our client, IDL Solutions, Inc. (“IDL”), by CACI International, Inc. (“CACI”).  IDL will fall under CACI’s newly formed Federal Civilian Solutions business group, and complements its November 2012 acquisition of healthcare IT (“HIT”) provider, Emergint Technologies, Inc.  The acquisition will enable CACI to expand its presence in the $33.5 billion addressable healthcare market and the Federal health insurance area in particular.  This marked KippsDeSanto’s fifth Federal HIT transaction in 2012.

Headquartered in Germantown, WI, with Federal offices in Reston, VA, IDL is an industry-leading SEI CMMI Level 3 IT services company specializing in “big data” analytics, application development, and business process management primarily for the HIT services market.  IDL’s main customer is the Centers for Medicare and Medicaid Services (“CMS”) within the Department of Health and Human Services (“HHS”), for which the Company possesses the Enterprise System Development (“ESD”) vehicle and provides direct mission-critical support by addressing data collection, storage, analysis, and dissemination needs, associated with the administration of Medicare, Medicaid, and other related public health programs.  With a firm presence in five of CMS’ seven organizational centers, IDL possesses a strong understanding of the customer’s needs on an enterprise level and is well positioned to be at the forefront of future requirements.  IDL also holds major contract vehicles and relationships with the Food and Drug Administration (“FDA”), National Institutes of Health (“NIH”), and other strategic civilian agencies, providing further growth opportunities.

Customers desire to partner with IDL given its proven track record of success, highly talented and experienced professionals, and advanced technology competencies.  In particular, IDL’s “big data” capabilities enable healthcare customers to turn large volumes of data into actionable intelligence, improve customer service, minimize fraudulent activities, and promote better patient care.  Leveraging its expertise in addressing these market challenges, IDL has successfully established itself as a leader within the Federal HIT market and is poised to capitalize on growing needs in business intelligence, data analytics, and data warehousing.

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

• Strong buyer appetite for companies well-positioned with mission-oriented customers, and oriented toward those market segments anticipating strong future growth, such as HIT, big data, and cyber and intelligence.
• Strategic buyers continue to target M&A opportunities that address strategic gaps or augment an existing presence with substantive depth in those priority areas.
• Given macro-economic and Federal budget uncertainty, buyers seek targets with sustainable growth potential evidenced by actionable new business opportunities.
• Continued emphasis on and attraction to high value, long-term contracts and contracting vehicles (e.g., CMS ESD).

KippsDeSanto & Co. is an investment bank focused on delivering exceptional M&A and financing transaction results for leading technology and defense companies. For more information on KippsDeSanto & Co., please visit www.kippsdesanto.com.

We welcome the opportunity to discuss how KippsDeSanto & Co. can help you achieve your strategic objectives. For more information on this particular transaction, please contact one of the deal team leaders below.

PRESS RELEASE

CACI Acquires IDL Solutions, Inc.

Acquisition Positions Company for Strategic Growth in Healthcare IT Market

ARLINGTON, Va.–(BUSINESS WIRE)– CACI International Inc. (NYSE: CACI) announced today that it has acquired IDL Solutions, Inc., a leading provider of information technology solutions, applications, and mission-critical systems support to healthcare IT clients and other civilian agencies. This acquisition expands CACI’s presence in the $33.5 billion addressable healthcare market and the federal health insurance area in particular, and complements its November 2012 acquisition of healthcare IT provider Emergint Technologies, Inc.

Founded in 1993, IDL Solutions has over 100 employees and is headquartered in Germantown, Wisconsin with federal offices in Reston, Virginia. The company leverages “big data” analytics to help healthcare organizations gain new insights from large volumes of health data, which in turn drives cost-effective business processes, improves patient care, and increases mission success. Its workforce has extensive experience in application development, data analytics, and business automation and IT support. The company has achieved the Software Engineering Institute’s globally recognized, independent assessment of CMMI® Level 3.

IDL Solutions has major contract vehicles at the Department of Health and Human Services (HHS), specifically with the Centers for Medicare and Medicaid Services, Food and Drug Administration, and National Institutes of Health. Its 2012 revenue is expected to be approximately $18.5 million, and the acquisition is expected to be slightly accretive to CACI’s earnings per share during its first 12 months. Terms of the transaction were not disclosed.

John Mengucci, CACI Chief Operating Officer and President of U.S. Operations, said, “With our acquisition of IDL Solutions, CACI has specialized capabilities to address the challenges of clients in the federal civilian healthcare and health insurance spaces. In particular, IDL Solutions’ expertise in big data will enable us to provide the critical data collection, storage, analysis, and dissemination capabilities that enable healthcare organizations to improve customer service, minimize fraudulent activities, and promote better patient care.”

According to Dan Allen, CACI President and Chief Executive Officer, “CACI’s acquisition of IDL Solutions, coupled with our recent acquisition of Emergint Technologies, is an important step in our strategy to build CACI’s healthcare IT business. This acquisition falls under our newly formed Federal Civilian Solutions business group, which includes healthcare, and aligns with our ongoing growth strategy to gain a larger share of the rapidly growing Healthcare IT market.”

IDL Solutions, Inc. President and Chief Executive Officer Baly Ambegaoker said, “We look forward to bringing our committed team and healthcare analytics capabilities to CACI and growing together as we continue to address mission challenges across the federal healthcare IT landscape.”

CACI provides information solutions and services in support of national security missions and government transformation for Intelligence, Defense, and Federal Civilian clients. A member of the Fortune 1000 Largest Companies and the Russell 2000 Index, CACI provides dynamic careers for approximately 14,900 employees working in over 120 offices worldwide. Visit www.caci.com.

KippsDeSanto & Co. is pleased to send you the attached press release announcing the acquisition of our client, Catapult Technology, Ltd. (“Catapult”), by DC Capital Partners (“DC Capital”). The acquisition by DC Capital will provide additional capital and professional resources to enhance Catapult’s market position, growth, and meaningfully expand its customer base.

Headquartered in Bethesda, MD, Catapult is a leading provider of information technology (“IT”) and management consulting services to the federal government, including civilian, defense, intelligence, and law enforcement agencies.

Catapult wields a suite of highly-tailored and scalable IT solutions to help customers improve efficiency, reduce costs, increase automation, and ensure compliance with federal regulations. The Company offers a complete continuum of solutions including, but not limited to, enterprise management, software development and engineering, information assurance, strategic planning, and human resources management.

Together with two other DC Capital portfolio companies, Strategic Intelligence Group, LLC and Kickstand, LLC, which will immediately being merged into Catapult, the combined company will be able to leverage its IT and consulting services and solutions to new customers across the federal government.  The founder of Catapult shifts to a minority shareholder position and a member of the Board of Directors.

Douglas T. Lake, Partner of DC Capital, said, “It was a pleasure working with KippsDeSanto on this transaction as they truly understand the government services market.”

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

• Companies that focus on enterprise IT modernization and consolidation initiatives have an attractive position in today’s market as the Federal government seeks to optimize its operations given the current budget environment
• Knowledgeable private equity firms continue to be active in the government services space, with a heavy focus on innovation and differentiation and the quality of the management team and employees in place to drive growth

KippsDeSanto & Co. is an investment bank focused on delivering exceptional M&A and financing transaction results for leading technology and defense companies. For more information on KippsDeSanto & Co., please visit www.kippsdesanto.com.

We welcome the opportunity to discuss how KippsDeSanto & Co. can help you achieve your strategic objectives.