KippsDeSanto & Co. advises Logistics Management Institute on its sale of for-profit subsidiary, LMI Consulting, to a consortium of investors formed by Declaration Partners, Capitol Meridian Partners, and 22C Capital
KippsDeSanto & Co. is pleased to announce the sale of LMI Consulting (“LMI” or the “Company”) by its client, Logistics Management Institute (“the Nonprofit”), to Declaration Capital Partners, Capitol Meridian Partners, and 22C Capital. The remaining Nonprofit will be re-branded as NobleReach Foundation™.
Headquartered in Tysons, VA, LMI is a leading provider of technology-enabled management advisory, logistics, and digital & analytics solutions to the U.S. government.
The Company specializes in delivering modern, repeatable solutions to help federal and Intelligence Community (“IC”) customers align their resources with changing and competing priorities, arming them with practical tools to prepare for future challenges. Specific core offerings include advanced analytics, artificial intelligence, business transformation, human capital solutions, supply chain management, and logistics transformation. Additionally, the Company has a rich portfolio of proprietary modeling and simulation tools to help solve complex supply chain and inventory management problems and automate complex processes.
Founded in 1961 to help the Department of Defense (“DoD”) solve complex challenges, LMI has leveraged decades of experience and prior performance to establish a franchise position across nearly all federal markets. LMI is focused on bringing future-focused thought leadership and technology to customers within the Defense & Space, Health & Civilian, Homeland Security, and Intelligence markets.
The partnership with Declaration Partners, Capitol Meridian Partners, and 22C Capital will help expand LMI’s growth further as the Company continues to deliver in-demand capabilities and proprietary solutions across its core markets.
We believe this transaction highlights several key trends in the government technology solutions M&A market:
- High-end, next-generation technologies continue to be highly coveted growth areas given their importance to National Security and increasing budgetary trends
- Significant demand for diversified capabilities, market expertise, and intellectual property reinforced by highly skilled, experienced, and cleared employees
- Financial sponsors with explicit growth strategies and industry knowledge continue to deploy capital through new platform investments, particularly for companies with strong management teams, established customer relationships, and differentiated proprietary technologies
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 175 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.
Investment Banking products and services are offered through KippsDeSanto & Co., a non-bank subsidiary of Capital One, N.A., a wholly-owned subsidiary of Capital One Financial Corporation, and a member of FINRA and SIPC. Products and services are Not FDIC insured, Not Bank Guaranteed, May Lose Value, Not a Deposit, and Not Insured by Any Federal Government Agency.
LMI Agrees to Sell For-Profit Subsidiary to Consortium of Investors
- Declaration Partners, Capitol Meridian Partners, and 22C Capital have deep experience growing tech-enabled businesses that serve the U.S. government
- Investor group brings a blend of long-duration capital, industry expertise, and technology/data analytics resources to enhance LMI’s support of customers
- Remaining nonprofit entity to re-brand as NobleReach Foundation™
Tysons, VA, Washington, DC & New York, NY – LMI, a provider of technology-enabled management consulting, logistics and digital & analytics solutions to the U.S. government, has agreed to sell its for-profit subsidiary to a consortium of investment firms: Declaration Partners (backed by the family office of David M. Rubenstein), Capitol Meridian Partners, and 22C Capital. The for-profit subsidiary will retain the LMI name. The remaining entity will be re-branded as nonprofit NobleReach Foundation™ and be a free-standing independent entity. Terms of the transaction, which is expected to close in Q3 2022, are not disclosed.
Doug Wagoner, LMI president and CEO, said, “This new partnership will better position LMI to innovate and support the missions of its government customers. Declaration, Capitol Meridian, and 22C bring an extensive knowledge of the government marketplace and a deep technology expertise, strengthening our ability to help our customers solve their complex challenges.” He added, “Our people are our greatest asset. This opportunity expands our ability to attract and retain the best talent while maintaining our winning LMI culture.”
“The federal government is in the early stages of a generational digital transformation of IT infrastructure. Under the proven and inspired leadership of Doug Wagoner, LMI is well-positioned to continue to be the technology solutions provider of choice to a range of government agencies,” said Adam Palmer of Capitol Meridian Partners, Elliot Wagner of Declaration Partners, and Eric Edell of 22C Capital.
They added, “We will support Doug and his team as they build on LMI’s rich 60+ year history of relationships in a cross-section of the federal government and accelerate the evolution of the platform into a digital-focused, tech-enabled solutions provider leveraging an in-house technology incubator to better serve its customers.”
Founded in 1961 to help the Department of Defense resolve complex challenges, LMI provides digital services, advanced analytics, logistics, and management advisory services across the federal government, including the Department of Defense, the Department of Homeland Security, and the health and intelligence communities.
The Honorable Lisa Disbrow, LMI’s chair, commented, “The evolution and separation of LMI and NobleReach Foundation™ is a necessary force multiplier that accelerates the opportunity to realize LMI’s mission and charter—driving greater value for employees, government, and society through two unique, exceptional organizations.”
KippsDeSanto & Co. served as the M&A advisor to LMI, and Macquarie served as M&A advisor to the investors. The investors were also advised by Latham & Watkins, Sidley Austin, and Paul Weiss on various aspects of the transaction.
LMI is a consultancy dedicated to powering a future-ready, high-performing government, drawing from expertise in digital and analytic solutions, logistics, and management advisory services. We deliver integrated capabilities that incorporate emerging technologies and are tailored to customers’ unique mission needs, backed by objective research and data analysis. Founded in 1961 to help the Department of Defense resolve complex logistics management challenges, LMI continues to enable growth and transformation, enhance operational readiness and resiliency, and ensure mission success for federal civilian and defense agencies.
About Declaration Partners
Declaration Partners is a private investment firm that seeks to be a value-added capital partner and strategic resource to management teams and asset owners where patient, flexible capital provides an advantage. Declaration has approximately $2.5 billion in assets under management across its investment strategies, which include growth equity, real estate, platform company investments, fund seeding, and other opportunistic strategies. Anchored by the family office of private equity veteran and philanthropist David M. Rubenstein, Declaration invests on behalf of family offices and like-minded institutional investors. The firm was founded in 2017 and is headquartered in New York with an office in the Washington, DC area.
About Capitol Meridian Partners
Capitol Meridian Partners was formed in 2021 to invest at the nexus of commercial and government markets, targeting opportunities where the firm can invest and drive value creation through active engagement with management. The firm draws upon the deep network of industry veterans curated over 25+ years of its principals’ experience in the sector to bring thoughtful strategic resources to each investment opportunity.
About 22C Capital
22C Capital is a private investment firm committed to delivering capital and critical resources to companies operating at the intersection of technology enablement and data analytics adoption. 22C partners with world-class management teams to build
leaders in their respective markets. The firm’s operational and technology resources, including its affiliated data science organization, deliver practical, real-world support to help convert businesses’ challenges into opportunities and unlock their full potential.
Declaration, Capitol Meridian, and 22C Capital