National Technologies Associates Inc. (NTA) announced that it has acquired V1 Analytical Solutions, a provider of intelligence and information solutions, special activity support and training for defense and intelligence customers including special forces. Indian River Advisors advised NTA on the transaction while Rock Hall Partners advised V1. Deal terms were not disclosed.
Buchanan & Edwards Inc. announced that it has acquired The Reports and Requirements Company (R2C) LLC, a provider of national security consulting services specializing in cyber intelligence, intelligence collection, training support, and data governance and analysis. R2C will continue as a wholly-owned subsidiary of Buchanan & Edwards. Deal terms were not disclosed.
The KeyW Holding Corporation announced that it has agreed to acquire Sotera Defense Solutions in an all-cash deal worth approximately $235 million, including an expected $46 million net present value related to acquired net operating loss carryforwards. Sotera is projected to generate $225 million in revenue and $20 million in adjusted EBITDA in 2017. The deal will nearly double KeyW with projected combined revenues of approximately $535 million in 2017 and yield approximately $7 million of cost synergies within 12 to 18 months. KeyW expects the deal to be immediately accretive to 2017 adjusted EPS.
Owned by Ares Management and with over 1,100 employees (80 percent have Top Secret clearance and above), Sotera provides enterprise IT, cybersecurity, data fusion and analytics, intelligence analysis, and C5ISR solutions to the Federal Government and Intelligence Community. The deal will bring KeyW more than 12 prime IDIQ's and GWAC contracts, as well as key customers including FBI, DHS, and Army Intelligence.
RBC Capital Markets and Guggenheim Securities are serving as financial advisors to KeyW. Macquarie Capital and Sagent Advisors are serving as financial advisors to Ares Management and Sotera. The deal is expected to close in the second quarter of 2017.
MacDonald, Dettwiler and Associates Ltd. (MDA) announced that it has agreed to acquire DigitalGlobe Inc. for $35.00 in cash and stock. The deal values DigitalGlobe at an equity value of $2.4 billion or an enterprise value of $3.6 billion. With 2016 revenues of $725.4 million and adjusted EBITDA of $382.7M, the deal multiples are 5x revenue and 9.4x EBITDA.
DigitalGlobe is a provider of high-resolution Earth-imagery products and solutions which it provides using its own satellite constellation and third-party providers. The company recently acquired The Radiant Group which brought the company advanced geospatial expertise. Customers include defense, government and intelligence agencies as well as organizations in the oil and gas exploration, infrastructure management, and navigation technology markets.
BofA Merrill Lynch and RBC Capital Markets are serving as financial advisors to MDA. PJT Partners and Barclays are serving as financial advisors to DigitalGlobe.
Arlington Capital Partners announced that it has formed Polaris Alpha, a provider of mission-critical technology, software, and solutions to customers in the defense and intelligence communities. The companies merged include Arlington portfolio company EOIR Technologies, Intelligent Software Solutions, and PROTEUS Technologies. The combined company will have over 1,100 employees and projected 2017 revenue of over $250 million. Deal terms were not disclosed.
Huntington Ingalls Industries announced that it has agreed to acquire Camber Corporation for $380 million, including $25 million in tax benefits. Camber is a $364 million revenue provider of IT and technical services including agile software, network engineering, modeling simulation and training, unmanned systems, systems engineering, and data analytics. Camber's customers include the US Navy, US Army, Administrative Office of the United States Courts, US Postal Service, and the Intelligence Community. The company has approximately 1,100 employees and backlog of approximately $800 million. The deal is expected to close in late 2016.
DigitalGlobe Inc. announced that it has agreed to acquire The Radiant Group Inc. from Aston Capital for $140 million in cash. Based in Chantilly, Virginia, Radiant provides advanced geospatial solutions focused on solving real-time multi-source intelligence and exploitation to customers including the NRO, NGA, DIA and SOCOM. The company employs over 400 employees including 250 software engineers and has over 20 prime contracts which is projected to generate 2016 revenues of approximately $100 million. Historical revenue growth has been in excess of 10 percent.
The deal is expected to close by the end of 2016 and is projected to be accretive to profitability.
CALIBRE Systems Inc. announced that it has acquired Fusion Technology LLC, a Reston, Virginia-based provider of talent management solutions and instructional systems design strategies to the Intelligence Community. KippsDeSanto & Co. advised Fusion on the transaction. Deal terms were not disclosed.
LMI announced that it has acquired FourWinds Limited Company, a provider of management consulting services to national security customers including the intelligence community. 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.
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