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.
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.
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.