KippsDeSanto & Co. Advises 7Delta on Its Sale to ManTech International Corporation

KippsDeSanto & Co. is pleased to announce the acquisition of our client, 7Delta, Inc. (“7Delta” or the “Company”), by ManTech International Corporation (“ManTech”). The acquisition provides additional Healthcare Information Technology (“HIT”) capabilities to ManTech and further expands its Federal healthcare presence into the Department of Veterans Affairs (“VA”).

Headquartered in Columbia, MD, 7Delta is a leading provider of application development, program management, and enterprise IT solutions, principally for the VA. The Company has significant domain expertise over critical components of both the legacy and modernized systems of the VA’s IT infrastructure. 7Delta utilizes a unique service delivery model built around agile software development and service-oriented architecture, as well as a cadre of ScrumMaster-Certified professionals, among other technical experts.

7Delta’s strong past performance within the VA resulted in a prime award on the Department’s Transformation Twenty-One Total Technology (“T4”) acquisition program, and to date, the Company has been awarded more task orders than any other prime contractor on the vehicle.

As a key addition to ManTech’s HIT strategy, 7Delta provides access to a new customer set to expand on its healthcare presence in the Department of Defense and Health and Human Services. In addition, 7Delta will benefit from ManTech’s breadth of IT capabilities in order to enhance its support to the veteran population and the VA’s efforts to modernize its IT systems, applications, and processes.

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

  • Strategic buyers continue to target M&A opportunities that address strategic gaps, especially in well-funded markets such as HIT
  • Differentiation remains paramount to attracting acquisition interest, whether it is technology, intellectual property, customer access, or business development
  • Prime positions on large, long-term contract vehicles that transition to the acquirer drive value; however, buyers and investors are increasingly focused on companies with strong past performance, customer relationships, and a track record of awards under these vehicles
  • Given improved budget and funding visibility in the Federal market, strategic buyers are increasingly focused on deploying capital through acquisitions, especially for larger targets

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

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

KippsDeSanto & Co., member FINRA/SIPC, is not affiliated with other companies mentioned herein



ManTech Completes Acquisition of 7Delta, Inc.

Acquisition Continues ManTech’s Investment in Healthcare and Life Sciences Market

FAIRFAX, Va., May 27, 2014 (GLOBE NEWSWIRE) — ManTech International Corporation (Nasdaq:MANT) has completed the acquisition of 7Delta, Inc., a progressive company performing applications and software development, program management, systems integration, information assurance, and security architecture services primarily within the healthcare community at the Department of Veterans Affairs (VA).

The acquisition enables ManTech to deliver services through 7Delta’s prime position on the VA’s Transformation Twenty-One Total Technology (T4) program. The T4 program is a 5-year indefinite delivery, indefinite quantity (IDIQ) contract to help the VA transform its Information Technology (IT) programs. 7Delta has been awarded more T4 task orders than any other T4 prime contractor.

“We welcome the employees and customers of 7Delta to ManTech,” said ManTech Chairman and Chief Executive Officer George J. Pedersen. “This acquisition significantly enhances our healthcare presence, giving us access to a growing market at VA. We are now one of the leading providers of federal healthcare IT solutions and services.”

7Delta becomes a part of ManTech’s Mission Solutions & Services Group, led by Daniel J. Keefe. Mr. Keefe said, “7Delta’s innovative technology management solutions and capabilities fit well with our existing healthcare IT business. With strong capability and presence across the entire spectrum of federal healthcare, ManTech is well positioned to modernize and integrate the electronic health record systems across the federal government.”

ManTech funded the acquisition primarily from cash on hand with minimal funding from its existing line of credit. Consistent with the forward guidance given on April 30, 2014, the company expects 7Delta to contribute approximately $50 million in revenues and $5 million to its earnings before interest, taxes, depreciation, and amortization (EBITDA) in fiscal year 2014, excluding the cash tax deferral associated with the 338(h)(10) election.

About ManTech International Corporation

ManTech is a leading provider of innovative technologies and solutions for mission-critical national security programs for the intelligence community; the Departments of Defense, State, Homeland Security, Energy and Justice, including the Federal Bureau of Investigation (FBI); the healthcare and space communities; and other U.S. federal government customers. We provide support to critical national security programs for approximately 50 federal agencies through over 1,000 current contracts. Our services include the following solution sets that are aligned with the long-term needs of our customers: cyber security; information technology (IT) modernization and sustainment; intelligence/counter-intelligence solutions and support; systems engineering; healthcare analytics and IT; test and evaluation; command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) solutions and services; environmental, range and sustainability services; training services; and global logistics support. We support major national missions, such as military readiness and wellness, terrorist threat detection, information security and border protection. Additional information on ManTech can be found at