Brixey & Meyer Capital (BMC) announced that it has acquired Stillwater Technologies, a supplier of precision machining and resistance welding solutions to customers in the communications, aerospace, defense, automotive and energy sectors. Stillwater is the second deal for BMC’s first fund which was launched in November 2015. The $18 million fund invests in lower middle market companies with $1 to $3 million in cash flow. Deal terms were not disclosed.
Accenture announced that it has agreed to acquire Redcore, an Australian security firm specializing in identity and access management services, cloud security, network management, PKI, cyber defense and IoT. Based in Melbourne and employing approximately 130 security professionals, Redcore serves customers including government agencies and companies in the finance, health, retail and telecommunications industries. Deal terms were not disclosed.
Analog Devices Inc. (ADI) announced that it has acquired the Cyber Security Solutions (CSS) business of Sypris Electronics LLC. CSS is a provider of secure system and software products to customers including military and government agencies.
According to the press release: “With this transaction, ADI enhances its aerospace and defense capabilities in the area of secure radio communications, bolsters its portfolio of system hardware and software-based cryptographic technologies, and adds a cybersecurity software and services business that supports our ability to offer more comprehensive high-performance analog solutions across multiple market segments such as Internet of Things (IoT), industrial, automotive, and more.”
Deal terms were not disclosed.
Arctic Slope Regional Corporation (ASRC) announced that it has acquired Reston, Virginia-based Vistronix Intelligence & Technology Solutions, expanding the company’s presence in the Intelligence Community. Formerly owned by Enlightenment Capital, Vistronix provides advanced analytics, signal intelligence, cybersecurity, and data processing to government clients. Vistronix has access to various contract vehicles including NIH CIO-SP3, GSA Alliant, and Navy SeaPort-e. Deal terms were not disclosed.
Tier One Relocation, a portfolio company of Southfield Capital, announced that it has acquired the military division of Arvin Van Lines. The acquired business known as Arpin Military, provides order procurement, relocation management, customer service, and back office administration services to the DoD. Deal terms were not disclosed.
Leidos announced that it has completed its merger with Lockheed Martin’s Information System & global Solutions business in a Reverse Morris Trust Transaction. The $5 billion deal creates the largest government services provider in the US with approximately $10 billion in annual revenues.
KBR Inc. announced that it has agreed to acquire Honeywell Technology Solutions Inc. (HTSI) from Honeywell International Inc. for $300 million, or $266 million after adjusting for approximately $34 million in acquired tax benefits. With annual revenues of approximately $600 million and EBITDA of approximately $42 million, HTSI provides technical and mission support services including logistics, cyber security, and physical security to government clients such as NASA, the DoD, and the US Intelligence Community.
40 percent of HTSI’s 3,550 employees hold security clearances. 75 percent of HTSI’s contracts are cost reimbursable and the business has current backlog of approximately $900 million ($536 million funded and $364 million unfunded). HTSI will be integrated into KBRwyle, a subsidiary of KBR that was formed earlier this year with the acquisition of Wyle Inc. KBR projects $85 million of annual revenue synergies by 2021.
The deal is projected to close during the late third quarter or early fourth quarter of 2016.
Constellis announced that it has agreed to a management-led buyout which includes the current CEO and President. The investment consortium is headed by Apollo Global Management LLC and includes current investors Forte Capital and Manhattan Partners.
Constellis provides security, risk management, crisis response, training, logistics, life support and technology services to government and commercial clients across 25 countries. The company has a bit of a controversial history since its subsidiaries include the former Blackwater business.
The transaction is projected to close by the end of the third quarter. Deal terms were not disclosed.
PlanetRisk announced that it has acquired Analytic Strategies, a provider of analytics services to the government. Analytic Strategies’ capabilities include enterprise analytics, data system management, operations research, supply chain management, and intelligence analysis. The company supports clients including the Secretary of Defense, DLA, DHA, NGA and various branches of the US Armed Forces. Frontier Capital and Petra Capital Partners provided financing for the deal. Deal terms were not provided.
Tribalco announced that it has acquired the U.S. Army Communications and Transmission Systems (CTS) business division assets from Intelligent Decisions, which includes primarily the CTS IDIQ prime contract vehicle. Task orders to be competed under this IDIQ include opportunities to provide the Army with communications technologies and services. There are 12 total primes on the $4.1 billion IDIQ which was awarded in 2013 and has a period of performance through September 2018. Deal terms were not disclosed.
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