​Arlington Capital Partners announced that it has acquired EOIR Technologies Inc.  Based in Fredericksburg, Virginia, EOIR and its 400 employees provides cloud computing, big data analytics, advanced visualization, C4ISR, spectrum-related information dominance, smart sensing, training and simulation, and rapid prototyping solutions to the DoD and Intelligence Community.  The company has prime positions on large contract vehicles with Army CERDEC ($995 million ceiling), Office of Naval Research ($800 million ceiling), and Army Research Lab ($250 million ceiling).  Deal terms were not disclosed.

Federal Data Systems announced that it has purchased two counterintelligence and intelligence business units from Intelligent Decisions focused on insider threat and critical infrastructure support services for commercial and government clients.  Deal terms were not disclosed.  

Along with the acquisition, FedData also made some key leadership changes by promoting Daniel Batelka to head its defense practice and Daniel Gilliam to become the company’s intelligence practice lead.  FedData also hired Lonny Anderson, a 14-year NSA veteran to head the company’s counterintelligence activities.   

As someone who spent a big chunk of my career at a great employee-owned company (the old SAIC before it was called Leidos and before its IPO), this deal brought a smile to my face.  JTG Inc. announced that it has completed a 100 percent employee stock ownership (ESOP) buyout with the former CEO remaining as an employee and member of the Board of Directors.  JTG provides intelligence analytics (digital engagement, social media analysis, foreign media monitoring, and open source analysis), training, and language support to government and commercial clients.  

The McLean Group advised JTG on the transaction.  For a quick overview of ESOP's, check out this ESOP 101 by the Beyster Institute.

GovConWire reports that Assured Enterprises has acquired Nova Defense & Aerospace International (NDAi), a Service Disabled Veteran Owned Small Business based in Alexandria, Virginia.  NDAi is an intel/IT solutions and business strategy firm that provides services to the Federal government and Intelligence Community including aviation management, program management, portfolio management, and intelligence support.  

It seems like an interesting acquisition for Assured Enterprises which primarily provides cybersecurity services and solutions.  However, according to the GovConWire post (we couldn't find any other reference to the acquisition), Assured Enterprises CEO Stephen Soble states that "the acquisition of NDAi is in line with the company’s efforts to boost its cybersecurity platforms and services intended to protect national critical infrastructure and commercial sectors from cyber threats."

Deal terms were not disclosed.

CACI International Inc. announced that it has completed the acquisition of L-3's National Security Solutions business (NSS), a deal that was first announced in December.  NSS provides enterprise IT, cyber, and intelligence services to the DoD, Intel agencies, and Federal civilian agencies. Approximately 90 percent of NSS's work is as prime and approximately 90 percent of its employees hold clearances at Secret and above. The business generated trailing twelve-month revenue of approximately $1 billion and adjusted EBITDA margins of 6.6%.  The purchase price is $550 million and after adjusting for the tax deductibility of the resulting goodwill, the enterprise value to adjusted LTM EBITDA multiple is 7.9x.

Check out our detailed report on this transaction.  

SOS International LLC (SOSi) announced that it has acquired New World Solutions, a Service Disabled Veteran Owned Small Business based in Fairfax, Virginia.  New World Solutions provides imagery science, cyber analytics, and advanced technology research to defense and intel customers including the Office of the Secretary of Defense, National Ground Intelligence Center, National Geospatial Intelligence Agency, and National Reconnaissance Office.

According to the press release: "The addition of New World Solutions significantly increases SOSi's presence within the intelligence community in the national capital region and broadens its clients and technical capabilities to support the national cyber and intelligence, surveillance and reconnaissance missions."

​Deal terms were not disclosed.

Formula Systems announced that it has partnered up with Israel Aerospace Industries (IAI) to acquire TSG from Ness Technologies Inc., a portfolio company of TRG Management LP.  TSG is a subsidiary of Ness and provides C2 systemes, intelligence, homeland security and cybersecurity services to Israel's defense organizations including the Israeli Defense Forces and the Israeli Police.  The total purchase price will be $50M in cash and will be split evenly with each of Formula and IAI acquiring 50% stakes for $25M.  Formula and IAI will seek to grow TSG through follow-on acquisitions of companies in complimentary areas.  

Israel Discount Capital Markets & Invetments Ltd. and Fischer, Behar, Chen, Well Orion & Co. advised Ness on the deal.

Preferred Systems Solutions Inc. (PSS), a portfolio company of CM Equity Partners announced that it has acquired Tetra Concepts LLC, a professional services firm focused on serving the Defense, Intelligence Community, and Commercial Healthcare markets.  Tetra Concepts is a Veteran Owned Small Business with capabilities that include Big Data engineering, high performance computing, and software engineering.  This latest deal marks PSS's fifth acquisition in less than two years.  Deal terms were not disclosed.   

Cambridge Capital Acquisition Corp., a special purpose acquisition corporation (SPAC) that went public in 2013, announced that it has completed its merger with Tel Aviv, Israel-based Ability Computer & Software Industries Ltd., a provider of tactical communications intelligence solutions used by military and law enforcement agencies worldwide.  Ability offers products that support lawful interception, surveillance, decryption, cyber, and geolocation solutions.  

Anatoly Hurgin, CEO of Ability, stated, “This transaction elevates Ability’s profile as a NASDAQ-listed company and provides us with new capital and a public currency to facilitate our growth strategy. We expect to create long-term value for our shareholders through a number of growth initiatives.”

The deal's enterprise value is $225M payable in stock and cash.  In addition, there is an earnout comprised of 8.45M shares payable based on achieving net income targets in 2015, 2016, 2017, and 2018.  As part of the transaction, Cambridge changed its name to Ability Inc. and will begin trading under the ticker ABIL.  

Financial advisors include EarlyBirdCapital Inc., FBR Capital Markets & Co., and I-Bankers Securities Inc. for Cambridge and Migdal Underwritiing & Business Initiatives Ltd. for Ability.  Legal advisors include Graubard Miller and Semah Schneider & Partners for Cambridge, and Blank Rome LLP and Vibeke Dank Adv. for Ability.

Cubic Corp. announced a couple of deals including the acquisition of TeraLogics LLC and the signing of a definitive agreement to acquires GATR Technologies Inc.  Ashburn, Virginia-based TeraLogics provides full-motion Processing, Exploitation and Dissemination (PED) for the DoD, Intelligence Community and commercial clients.  The total consideration includes an initial purchase price of $39M and contingent consideration of $9M.

Huntsville, Alabama-based GATR Technologies is a manufacturer of next-generation deployable satellite communication terminal solutions.  The total consideration includes an initial purchase price of $225M and contingent consideration of $7.5M.  The deal is subject to a HSR review and is expected to close in Cubic's second fiscal quarter 2016.

Bradley Feldmann, President and CEO of Cubic Corporation states: "The acquisition of TeraLogics and GATR represents powerful next steps in achieving our C4ISR growth strategy as they expand our footprint in the C4ISR and SATCOM markets."