KippsDeSanto & Co. Advises NES Associates, LLC on Its Sale to CSRA, Inc.

KippsDeSanto & Co. is pleased to announce the sale of our client, NES Associates, LLC (“NES” or the “Company”), to CSRA, Inc. (“CSRA”).  NES is a leading global IT firm with expertise in enterprise networking, cybersecurity, infrastructure, and application architecture primarily to customers within the Department of Defense (“DoD”) and other Federal agencies.

Based in Alexandria, VA, NES provides full lifecycle IT solutions, which include IT infrastructure, network operations, telecommunications, data center, enterprise software, and cybersecurity support.  NES’ differentiated capabilities and domain expertise, in addition to the Company’s highly skilled, certified, and experienced employees, have led to deep relationships with DoD customers.  Notably, NES has in-depth experience with nearly every military base’s network infrastructure, both in and outside of the continental United States.

Through its acquisition of NES, CSRA expects to leverage the Company’s expertise and experience in defense telecommunications and infrastructure implementation to accelerate its growth through the pursuit of large IT modernization opportunities and to eliminate barriers to the adoption of next-generation IT.

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

    • Public buyers are using M&A to strengthen strategic capabilities that improve positioning for future large-scale procurements.
    • There is a strategic emphasis on technical expertise around the “network” especially given its applicability to the reliable delivery of next-generation IT solutions.
    • Critical mass of experienced and high-end technical talent as evidenced by applicable certifications and accreditations is a differentiator amongst acquisition prospects.
    • Strategic buyers continue to utilize M&A to augment or add trusted customer relationships with agencies having mission critical IT needs and strong budget support.
    • Sizeable acquisition candidates having a proven track-record of growth and positive outlook remain in high demand.

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

Press Release

CSRA Completes Acquisition of NES Associates

 First Acquisition as a Public Company Will Enable CSRA to Compete More Effectively on Large IT Contracts

FALLS CHURCH, Va., July 5, 2017 /PRNewswire/ — CSRA Inc. (NYSE: CSRA) announced today it has completed the acquisition of NES Associates, a well-respected federal IT service provider. NES provides specialized expertise in enterprise networking, cybersecurity, infrastructure, and application architecture as well as implementation services to customers in the military and other federal agencies.

“I’m pleased we have closed on our first acquisition as a public company,” said CSRA President and CEO Larry Prior. “NES Associates will bring us innovative network engineering capabilities as we pursue large IT modernization opportunities in upcoming years, another example of how we live our tagline, ‘Think Next. Now.'”

“CSRA is a perfect fit for NES,” said NES founder and CEO Andy Gomer. “Our network engineering capabilities matched extremely well with CSRA’s opportunities and resources. Our companies have highly compatible cultures and a shared focus on serving our citizens and warfighters.  We are very excited to continue to serve our customers’ missions with so much added capability.”

CSRA President and CEO Larry Prior first announced the acquisition of NES during the Fiscal Year 2017 earnings call on May 24. During the call, Prior noted “NES’ deep understanding of the network that connects customers’ mission-to-compute will enable CSRA to eliminate many barriers to the adoption of next-generation IT. These digital transformation efforts rely on the availability of secure, resilient, high-bandwidth and low-latency networks that enable hyperscale infrastructures and accelerate the adoption of cloud operating models.”

By joining forces with NES, CSRA will accelerate the adoption of its next-generation digital solution offerings and intends to become the network transformation leader. The key innovations, talent, and past performance from NES also will significantly improve CSRA’s win probability on several very large pursuits across the company.

About CSRA Inc.

CSRA (NYSE: CSRA) solves our nation’s hardest mission problems as a bridge from mission and enterprise IT to Next Gen, from government to technology partners, and from agency to agency.  CSRA is tomorrow’s thinking, today. For our customers, our partners, and ultimately, all the people our mission touches, CSRA is realizing the promise of technology to change the world through next-generation thinking and meaningful results. CSRA is driving towards achieving sustainable, industry-leading organic growth across federal and state/local markets through customer intimacy, rapid innovation and outcome-based experience. CSRA has over 18,000 employees and is headquartered in Falls Church, Virginia. To learn more about CSRA, visit Think Next. Now.