KippsDeSanto & Co. advises Thompson Gray, Inc. on Sale to Newly Formed ESOP

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KippsDeSanto & Co. advises advises Thompson Gray, Inc. on Sale to Newly Formed ESOP

KippsDeSanto & Co. is pleased to announce the sale of Thompson Gray, Inc. (“Thompson Gray” or the “Company”) to a newly formed Employee Stock Ownership Plan (“ESOP”), making the Company 100% employee owned.  The transaction enables the Company’s employees, management, and former shareholders to benefit in the ongoing success of the business, while affording the Company’s customers continuity of mission support from a trusted advisor.  The transaction was structured in partnership with Thompson Gray’s management team, FMI Capital Advisors, SCJ Fiduciary Services, and SouthState Bank.

Headquartered in Huntsville, AL, Thompson Gray provides enterprise information technology (“IT”), digital transformation, financial management, and comprehensive technical and programmatic support services to U.S. Government customers.  The Company’s core capabilities include the deployment, optimization, and sustainment of SAP-based Enterprise Resource Planning (“ERP”) systems; robotic process automation (“RPA”); data visualization and modeling; systems engineering; audit readiness and financial transformation; strategic planning; and program management.  The Company’s team is composed of nationally recognized experts and is built upon the idea of providing unparalleled subject matter expertise to defense and civilian customers.

We believe this transaction demonstrates several key trends in the defense / government services and commercial technology deal environment:

  • ESOP buyouts continue to be an actionable transaction alternative, providing long-term benefits to shareholders and employees
  • Entrenched positions on mission-critical programs and expertise across technology capabilities such as SAP, Oracle, and other low-code, no-code platforms continue to attract strong investor and capital provider interest
  • Companies that possess strong past performance, long term customer relationships, and a track record of recurring contract awards can have a range of transaction alternatives beyond just the traditional strategic buyer and private equity alternatives

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 200 industry transactions since 2008, 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.

Securities and investment banking products and services are offered through KippsDeSanto & Co., a non-banking subsidiary of Capital One, N.A., a wholly owned subsidiary of Capital One Financial Corporation. KippsDeSanto is a member of FINRA and SIPC. Products or services are Not FDIC Insured, Not Bank Guaranteed, May Lose Value, Not a Deposit, and Not Insured By Any Federal Governmental Agency.