KippsDeSanto & Co. Advises Whitney, Bradley & Brown, Inc. on its Merger with NetStar-1, a portfolio company of Lake Capital

KippsDeSanto & Co. is pleased to send you the attached press release announcing the merger of our client, Whitney, Bradley & Brown, Inc. (“WBB”), with NetStar-1, a portfolio company of Lake Capital.  WBB and NetStar-1 combined business operations to form a premier management consulting services firm with substantial scale and reach within the federal government.  The transaction closed on February 21, 2012.

Headquartered in Reston, VA, WBB is a management consulting and technical services firm that acts as a trusted and long-term advisor of choice for the Department of Defense, federal civilian agencies, and defense-related commercial companies.  WBB has an established reputation for providing tailored solutions that address sophisticated government challenges and help priority security agencies achieve mission success.

The merger of WBB and NetStar-1 allows the combined company (operating under the WBB brand name) to become a leading service provider to the federal government and offers the ability to aggressively grow and strengthen its position on existing contracts and future opportunities.  The combined company has over $130 million of revenue and 500 employees, with the past performance and newly acquired depth, breadth, and resources to provide high quality services and solutions to a range of clients across the federal government.

The transaction demonstrates several key trends in the government services M&A environment:

• Premier providers of distinguished solutions are in high demand as the overall shift in the budget and funding enviroment results in a need for expert solutions and advice
• Private equity firms continue to be active in the government services space, looking for strategic opportunities
• Leveraged finance for government services transactions remains accessible
• Consolidation of the government services industry continues to occur, as firms look to restructure and reposition within critical government areas and customers

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 www.kippsdesanto.com.

We welcome the opportunity to discuss how KippsDeSanto & Co. can help you achieve your strategic objectives.  For more information on this particular transaction, please contact one of the deal team leaders below.

NetStar-1 and Whitney, Bradley and Brown, Inc. Merge

Form Premiere Management Consulting Services Firm Focused on the Needs of the Federal Government

NetStar-1, a leading provider of management consulting services to U.S. federal agencies, and Whitney, Bradley and Brown, Inc. (WBB), a management consulting firm focused on business transformation, organizational realignment, and process improvement, today announced that they are merging their business operations effective immediately. The merger follows a significant investment in WBB by Lake Capital, a private equity firm that invests exclusively in service-based companies. Lake Capital made its initial investment in NetStar-1 in 2007.

Founded in 1981 with its roots in serving the Department of Defense, WBB has grown to become a leading provider of CONOPs, requirements, organizational development, acquisition, and technical consulting services to agencies including the Department of Defense, the Department of Homeland Security, and the Veterans Health Administration. “We are excited about the increased scale and reach within our target markets that this merger brings us,” said William McMullen, President and CEO of WBB. “We believe NetStar-1 enhances our past performance and the depth and breadth of our management consulting resources. This will enable us to aggressively grow our business by positioning ourselves more competitively on substantial governmental initiatives and prime contract awards, and strengthen our ability to support our clients with innovative solutions that are relevant to today’s federal government needs.”

NetStar-1 is a leading provider of transformation, program management, requirements, and business and financial management consulting services, primarily to clients within the Department of Homeland Security. “This merger extends our strategic initiative to become one of the leading management consulting organizations focused on the federal government,” said Kevin Rowe, President and CEO of NetStar-1. “That initiative began in October of 2010 when we divested our Technology Solutions and Commercial Sales divisions to focus exclusively on management consulting services. By joining our resources with WBB’s we gain substantial scale and broad agency coverage which will allow us to more aggressively grow our business. The resulting cost synergies of the merger will allow us to provide high quality services in an increasingly competitive market.”

The combined company will have over $130 million of revenue and 500 employees. Key customers include the Department of Defense, Department of Homeland Security, Veterans Health Administration, Department of Justice, Office of Personnel Management, and a number of government-related contractors in the private sector. William McMullen will become President and CEO of the combined company and Kevin Rowe will become Chairman. The combined company will operate under the WBB brand and will be headquartered in Reston, VA.

About NetStar-1

Headquartered in Rockville, MD, NetStar-1 is a leading provider of management consulting services to U.S. federal government clients. NetStar-1’s expertise spans multiple areas of consulting including program management, financial management, business transformation, and portfolio management. For more information on NetStar-1 visit www.netstar-1.com.

About WBB

Headquartered in Reston, VA, WBB is a premier management consulting and technical services firm that acts as a trusted and long-term advisor of choice for the Department of Defense, federal civilian agencies, and defense-related commercial companies. WBB has an established reputation for providing tailored solutions that address sophisticated government challenges and help priority security agencies achieve mission success. For more information on WBB visit www.wbbinc.com.

About Lake Capital

Lake Capital is a private equity firm that focuses on investments in service-based enterprises across various industries. The firm currently manages more than $1.3 billion in equity commitments and seeks to build leading services companies through organic and acquisition-enhanced growth. More information about Lake Capital is available at www.lakecapital.com.

NetStar-1
Kevin Rowe
240-425-4677
Kevin.rowe@netstar-1.com
or
WBB Consulting
William McMullen
703-448-6081
mcmullen@wbbinc.com
or
Lake Capital
Doug Rescho
312-640-7082
drescho@lakecapital.com