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 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 a 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 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.

KippsDeSanto & Co. advises eGlobalTech on its Sale to Tetra Tech

KippsDeSanto & Co. advises eGlobalTech on its Sale to Tetra Tech

KippsDeSanto & Co. is pleased to announce the sale of our client, eGlobalTech, Inc. (“eGlobalTech” or the “Company”) to Tetra Tech, Inc. (“Tetra Tech”).

Based in Arlington, VA, eGlobalTech provides the federal government with innovative solutions that produce enduring results through its strategy, information technology, cloud and cybersecurity consulting services.  The Company is well-known for its ability to deliver advanced frameworks such as DevOps Factory®, artificial intelligence, data science, and cloud computing.  eGlobalTech also utilizes its eGT Labs to prototype emerging technology solutions and test new technologies, allowing the Company to quickly resolve complex issues for clients.

The transaction expands Tetra Tech’s capability set in artificial intelligence, data analytics, and advanced cybersecurity while providing new federal customers such as the U.S. Department of Health and Human Services.

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

  • Buyers are focused on M&A as an effective strategy to access next-generation IT capabilities including cybersecurity, cloud, and “as-a-service”
  • Deep domain and subject matter expertise, particularly when coupled with long-term relationships, are critical differentiators for sellers in a crowded M&A market
  • Continued M&A interest in high-end government technology solutions businesses from non-traditional buyers

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

Tetra Tech Expands its Technology Solutions with Acquisition of eGlobalTech

PASADENA, California (BUSINESS WIRE) April. 3, 2019 – Tetra Tech, Inc. (NASDAQ: TTEK) announced today that it has acquired eGlobalTech, a high-end information technology (IT) solutions, cloud migration, cybersecurity, and management consulting firm based in Arlington, Virginia.

“The integration of emerging technology into our consulting practice continues to advance Tetra Tech’s ability to provide innovative solutions for our clients,” said Dan Batrack, Tetra Tech Chairman and CEO. “The addition of eGlobalTech and their laboratory incubator will allow us to pilot and apply exciting new techniques that incorporate artificial intelligence, data analytics, and advanced cybersecurity solutions for our government and commercial customers. Further, eGlobalTech brings us a suite of new federal clients, including the U.S. Department of Health and Human Services.”

Sanjiv Jain, eGlobalTech CEO, commented, “Our employees are excited about joining the Tetra Tech family and the opportunities that a broader, global platform offers. This merger will provide us with the high-end partnership, with a like-minded company, that will continue to advance the application of IT to more clients and projects, while providing extraordinary new opportunities for our employees to apply their expertise.”

The terms of the acquisition were not disclosed. eGlobalTech is joining Tetra Tech’s Government Services Group.

About eGlobalTech (www.eglobaltech.com)

eGlobalTech is a leading IT solutions, cybersecurity, and management-consulting firm based in Arlington, VA. Our focus is providing the federal government with innovative solutions that produce enduring results, leveraging cutting-edge technologies and frameworks such as DevOps Factory®, artificial intelligence, data science, and cloud computing.

About Tetra Tech

Tetra Tech is a leading provider of high-end consulting and engineering services for projects worldwide. With more than 17,000 associates working together, Tetra Tech provides clear solutions to complex problems in water, environment, infrastructure, resource management, energy, and international development. We are Leading with Science® to provide sustainable and resilient solutions for our clients. For more information about Tetra Tech, please visit tetratech.com, follow us on Twitter (@TetraTech), or like us on Facebook.

Any statements made in this release that are not based on historical fact are forward-looking statements. Any forward-looking statements made in this release represent management’s best judgment as to what may occur in the future. However, Tetra Tech’s actual outcome and results are not guaranteed and are subject to certain risks, uncertainties and assumptions (“Future Factors”), and may differ materially from what is expressed. For a description of Future Factors that could cause actual results to differ materially from such forward-looking statements, see the discussion under the section “Risk Factors” included in the Company’s Form 10-K and 10-Q filings with the Securities and Exchange Commission.

KippsDeSanto & Co. Advises Kforce, Inc. on its sale of Kforce Government Solutions to ManTech International Corporation

KippsDeSanto & Co. Advises Kforce, Inc. on its sale of Kforce Government Solutions to ManTech International Corporation

 KippsDeSanto & Co. is pleased to announce the sale of its client, Kforce Government Solutions (“KGS” or the “Company”), a subsidiary of Kforce Inc., (NASDAQ: KFRC), to ManTech International Corporation (“ManTech”).

KGS is a leading provider of high-end technology and business consulting solutions focused on improving mission effectiveness and operational efficiencies for federal agency customers. With more than two decades of experience, KGS has developed extensive domain knowledge and past performance in critical areas that include: enhancing mission-critical enterprise-wide systems and architectures via DevOps and Cloud migration; improving and automating essential business functions; developing data management strategies and applying analytics to business operations; and sustaining augmented financial reporting capabilities and performance. KGS has developed a long-standing and deep relationship with the Department of Veterans Affairs (“VA”) and is a prime holder on the highly sought-after Transformation Twenty-One Total Technology-Next Generation (“T4NG”) vehicle. Additional customers include Defense Threat Reduction Agency (“DTRA”), U.S. Air Force, and Defense Advanced Research Projects Agency (“DARPA”).

In 2018, KGS realized ~$98M of revenue, (which represented ~10% growth over 2017) and had ~$480M of backlog at the time of sale. ManTech paid $115M, or ~12x 2018 EBITDA for KGS. The acquisition expands ManTech’s presence within the VA and provides access to T4NG, as well as adding key customers and capabilities.

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

  • Prime, full & open positions on key vehicles, such as T4NG, continue to drive buyer interest and premium valuations
  • Buyers remain interested in well-positioned companies with strong backlog and financial momentum
  • Both buyers and sellers continue to gain value from corporate divestitures

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

ManTech Completes Acquisition of KGS from Kforce

April 01, 2019 — ManTech completed its acquisition of KGS, a wholly-owned subsidiary of Kforce, Inc. Fairfax, Va.-based KGS provides technology solutions, transformation management, data management and analytics in support of federal health and defense missions. KGS has built a strong legacy of success with its customers particularly within the VA. The acquisition adds over 500 highly skilled employees to the ManTech team. In 2018, KGS generated approximately $98 million of revenue and has profitability comparable to ManTech.

The transaction does not include TraumaFX, Kforce’s federal government product business. Kforce is exploring strategic alternatives for that business. The operating results of KGS and TraumaFX are being reported as discontinued operations in the first quarter of 2019.

The combination will substantially increase ManTech’s footprint at the VA and enable ManTech to deliver services through the VA’s T4NG program. The T4NG program is a 10-year indefinite delivery, indefinite quantity (“IDIQ”) contract awarded by the VA Technology Acquisition Center (“TAC”) to help the VA transform its information technology programs.

ManTech President and CEO Kevin M. Phillips stated: “This acquisition is consistent with ManTech’s targeted federal civilian expansion strategy. We are pleased to welcome KGS’ talented employees, differentiated capabilities and important customers.”

KGS CEO Maureen Coyle stated: “We are thrilled to become a part of ManTech. This strategic combination will help us better meet our clients’ needs by broadening and deepening our solution offerings. Additionally, our cultures are well aligned, and our employees will benefit from expanded professional development opportunities.”

Kforce chairman and CEO David L. Dunkel stated: “We are excited for our KGS management team and associates to join forces with ManTech, which we expect will enhance KGS’s competitive positioning. The sale of KGS is the final step in our strategy to narrow our focus to domestic professional and technical staffing services and solutions.”

David M. Kelly, Kforce’s Chief Financial Officer, stated: “We expect to use the significant majority of the proceeds from this transaction for share repurchases and are pleased to announce that our Board of Directors approved an increase in our share buy-back authorization to $150.0 million. In anticipation of the closing of this transaction, we repurchased approximately 430 thousand shares for $14.6 million in the first quarter of 2019.”

KippsDeSanto & Co. Advises System High Corporation on its Investment from Enlightenment Capital

KippsDeSanto & Co. Advises System High Corporation on its Investment from Enlightenment Capital

KippsDeSanto & Co. is pleased to announce the investment in System High Corporation (“System High” or the “Company”) by Enlightenment Capital (“Enlightenment”).

Headquartered in Chantilly, VA, System High has established itself as a preeminent provider of global protection and security technical engineering solutions for critical National Security and Special Access Programs (“SAP”) across the Department of Defense (“DoD”) and Intelligence Community (“IC”).  As a pioneer of industry best practices crafted to solve complex, evolving security challenges in support of sensitive programs, the Company’s proprietary methodologies and frameworks preserve advanced technological superiority and unique capabilities across classified, SAP, and Sensitive Compartmented Information programs complete lifecycles.

Coupled with non-traditional protection services, cyber and engineering capabilities, custom training solutions, and experienced Subject Matter Experts deeply versed in a range of security disciplines, the Company’s differentiated security offerings have generated entrenched inroads with difficult-to-obtain, high-profile clients, including the Defense Advanced Research Projects Agency, the National Reconnaissance Office, and the Joint Strike Fighter Joint Program Office, among others, presenting major growth avenues into a sizeable, enduring market.

As a new investment, Enlightenment expects to leverage the Company’s mission-critical suite of capabilities and extensive long-term relationships to expand its presence within a coveted DoD and IC customer base in support of enduring, critical national security programs.

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

  • Continued demand for sizeable, growing, IC-oriented firms
  • Highlights the demand for scarce assets with a Full and Open contract profile backed by a suite of complementary value drivers
  • Value continues to be placed on companies with mission-critical capabilities and support for SAPs and enduring programs poised to capitalize on budgetary tailwinds and technology modernization priorities
  • Private equity firms continue to leverage strong credit markets and remain active in the government services market

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

Enlightenment Invests in System High

January 22, 2019

Chevy Chase, Maryland – Enlightenment Capital, an Aerospace, Defense & Government focused investment firm based in the Washington, DC area, announced it has invested in System High Corporation to help accelerate the Company’s growth. System High will serve as Enlightenment’s newest platform. System High is a leading provider of proactive protection (P2), security engineering, counterintelligence, and cybersecurity solutions, serving select government and commercial customers.

Founded in 2005 with offices in the Washington, DC area and Colorado Springs, CO, System High is a leader in the design, development, and enforcement of proactive protection systems that preserve critical technologies and enhance information protection systems for a multitude of government and civilian organizations. “System High continues to attract the best professionals in our business space, and our customers benefit from our team’s focus on supporting our clients’ security goals,” said Rob Howe, newly appointed CEO and President. “I am proud to partner with Enlightenment and the System High family of professionals, which are passionate about preserving our national security.”

“System High will serve as the initial investment of a new Enlightenment platform, which will provide mission critical protection of the technology that underpins many of the most sensitive efforts within the Defense, Intelligence, and commercial sectors,” said Jason Rigoli, Partner of Enlightenment Capital. “We look forward to working with the leadership team to drive the Company’s growth as they continue to play an integral role in this special arena.”

“System High sits at the critical intersection of defense innovation and IP protection,” said Devin Talbott, Managing Partner of Enlightenment Capital. “We plan to support management and invest in the Company’s continued momentum – both organically and through M&A.”

“Enlightenment is an ideal partner and will be instrumental in helping execute our new long range strategic plan,” said Kirk Blubaugh, Company Founder, who will join the Company board, remain a shareholder, and act as a strategic advisor to the Company.

About System High

System High provides high-end solutions for some of the nation’s most sensitive activities and has become a leading provider and integrator of global protection and security engineering services. System High’s reputation of succeeding where others have failed is a direct result of bringing together and delivering the most innovative, critical thinking professionals to solve the most complex security challenges across both government and commercial sectors. For more information, visit www.systemhigh.com.

About Enlightenment Capital

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

KippsDeSanto & Co. Advises MacAulay-Brown, Inc.

KippsDeSanto & Co. Advises MacAulay-Brown, Inc. on its Sale to Alion Science and Technology Corporation

KippsDeSanto & Co. is pleased to announce the sale of its client, MacAulay-Brown, Inc. (“MacB” or the “Company”) to Alion Science and Technology Corporation (“Alion”), a portfolio company of Veritas Capital (“Veritas”).

With its national capital headquarters in Vienna, VA and its corporate headquarters in Dayton, OH, MacB has established decades long customer relationships while providing advanced engineering solutions in mission critical, high-barrier-to-entry  areas of National Security across the Department of Defense (“DoD”), the Intelligence Community (“IC”), and various Special Operations Commands (“SOCOM”).  MacB’s differentiated engineering solutions portfolio includes Research, Development, Testing, and Evaluation (“RDT&E”); cyber tools and operations, secure cloud engineering, and data analytic tools development and deployment; cybersecurity – both offensive and defensive; and rapid prototype and quick-response production / manufacturing / integration.

Furthermore, the Company leverages its national network of integrated technical laboratories, Sensitive Compartmented Information Facilities (“SCIFs”), and its next-generation big data platform (“BDP”) to support the entire life-cycle of high value big data solutions from development through fielding.  In a highly competitive government services industry, MacB’s high-barrier-to-imitation solution offerings, in combination with Alion’s, position the combined companies for continued growth in areas of national security mission significance.

Alion’s acquisition of MacB is a natural fit that enhances its technology and NextGen engineering capabilities, including “emerging technologies” in electronic warfare, artificial intelligence, cybersecurity, and cloud solutions; augments highly cleared customer access and Special Access Programs (“SAP”) contract concentration; and provides increased scale anchored by MacB’s revenue growth trajectory, contract win rates, and book to bill ratio.

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

  • Buyers are focusing on targets with entrenched positioning, including sole source contracts, longstanding incumbency, and customer intimacy, as well as well-funded customers and highly cleared mission-critical programs
  • Highlights the demand for a rare asset with the complete suite of value drivers: scale, priority DoD / IC customer access, Full and Open (“F&O”) and sole source prime contracts, a proven leadership team, an established growth trajectory, Intellectual Property (“IP”), and differentiated capabilities
  • Premiums are placed on acquisition targets that provide complementary solutions within an expanded customer footprint, particularly within the growing National Security / DoD end markets
  • 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 even for the most desirable assets

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

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Press Release 

Alion Science and Technology Corporation to Acquire MacAulay-Brown, Inc.

MCLEAN, Va.– Alion Science and Technology Corporation (“Alion”), a portfolio company of Veritas Capital, has entered into a definitive agreement to acquire MacAulay-Brown, Inc. (“MacB”), a leading provider of complex engineering and mission critical technology solutions and services for national security missions across Department of Defense (“DoD”) and Intelligence Community (“IC”) customers. The combination will strengthen Alion’s robust technology and engineering capabilities, deepen customer relationships, and create greater scale and resources to provide a broad set of solutions for customers.

“This acquisition brings together two leading industry engineering and technology firms, both with rich histories and highly skilled and capable workforces,” said Steve Schorer, President and CEO of Alion. “MacB’s offerings are truly differentiated in the government contractor market, and through this acquisition we strengthen our inroads into emerging technologies in electronic warfare, artificial intelligence, cybersecurity and cloud solutions. We look forward to working with Sid Fuchs and his experienced management team as we continue to build an even stronger Alion. Our customers will benefit from expanded technology, expertise, solutions and the dedicated talents our employees bring to achieving mission success.”

“This acquisition creates a uniquely competitive and innovative company focused on NextGen engineering and product solutions for national security missions,” said Sid Fuchs, President and CEO of MacB. “We are proud and excited to be part of the Alion and Veritas Capital family and look forward to working with them to take this enterprise to the next level.”

“Alion’s transformational acquisition of MacB will accelerate the company’s presence in high-priority emerging technologies,” said Ramzi Musallam, CEO and Managing Partner of Veritas Capital. “This combination creates a differentiated platform that will strengthen MacB and Alion’s ability to provide mission critical services and solutions in support of the customer’s mission.”

KippsDeSanto & Co. served as an exclusive financial advisor and Blank Rome LLP served as legal advisor to MacB. Macquarie Capital served as financial advisor and Schulte Roth & Zabel LLP served as legal advisor to Alion in the transaction.

About Alion Science and Technology

At Alion, we combine large company resources with small business responsiveness to design and deliver engineering solutions across six core capability areas. With an 80-year technical heritage and an employee-base comprised of more than 30% veterans, we bridge invention and action to support military readiness from the lab to the battle space. Our engineers, technologists, and program managers bring together an agile engineering methodology and the best tools on the market to deliver mission success faster and at lower costs. Based just outside of Washington, D.C., we help our clients achieve practical innovations by turning big ideas into real solutions. To learn more, visit www.alionscience.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, technology, 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 MacAulay-Brown, Inc.(MacB)

Over the past 39 years, MacAulay-Brown, Inc. (MacB) has been solving many of our Nation’s most complex National Security challenges. We are committed to delivering critical capabilities in the areas of Intelligence and Analysis, Cybersecurity, Secure Cloud Engineering, Research and Development, Integrated Laboratories and Information Technology to Defense, Intelligence Community, Special Operations Forces, Homeland Security, and Federal agencies to meet the challenges of an ever-changing world. With Corporate Headquarters in Dayton, Ohio and National Capital Headquarters in Vienna, Virginia, our 1,500 employees worldwide are dedicated to developing mission-focused and results-oriented solutions that make a difference where and when it matters most. Learn more about MacB at www.macb.com.