Hitachi Data Systems Federal Inc. announced that it has agreed to acquire cleared assets of Brocade Communication Systems Inc., specifically service maintenance contracts for cleared data center networking, campus/edge networking, and Storage Area Networking (SAN). The closing of the transaction will coincide with the closing of Broadcom's pending acquisition of Brocade. Deal terms were not disclosed.
Gnostech Inc. announced that the company's current President, James Espino, acquired Gnostech Inc. from Braxton Science & Technology Group on May 19, 2017. The acquisition by Mr. Espino who is a US Coast Guard veteran, allows the company to be designated as a Service Disabled Veteran Owned Small Business. Gnostech has over 70 employees and provides cybersecurity, software development, systems integration, and C4ISR expertise to government clients. Deal terms were not disclosed.
ECS Federal LLC announced that it has acquired InfoReliance, a provider of cybersecurity, cloud computing, software engineering solutions and managed services to government clients. InfoReliance is projected to add $150 million of revenue and expand ECS's agile software delivery capability supporting the Navy, USMC, USPS, FBI, the Intelligence Community and DOL. Kipps DeSanto was the financial advisor to InfoReliance. Deal terms were not disclosed.
Belcan LLC, a portfolio company of AE Industrial Partners LLC, announced that it has agreed to acquire Schafer Corporation from Metalmark Capital Partners. The deal is expected to close in the second quarter of 2017. With more than 400 employees worldwide, Schafer provides scientific, engineering, and technical services to military and civil government agencies. The company has specific expertise in CBRNE, space systems, air and defense, micro materials, and cybersecurity.
PricewaterhouseCoopers LLC served as financial advisor to Belcan and AE Industrial Partners while Raymond James & Associates advised Schafer and Metalmark Capital. Deal terms were not disclosed.
BG Staffing Inc. announced that it has acquired Zycron Inc. for $19 million in cash, $1 million in stock, and certain earn out provisions. Zycron provides IT temporary staffing services to Fortune 500 companies and government agencies, and had revenues of approximately $38.3M for the year ended December 31, 2016. This deal marks the eighth acquisition for BG Staffing since 2009.
Deloitte announced that it has expanded its cloud services capabilities through its acquisition of Day1 Solutions Inc., a provider of cloud consulting services. Based in McLean, Virginia, Day1 provides systems integration, managed services, and VAR services to clients in government, healthcare, and other industries. Deal terms were not disclosed.
Orion announced that it has acquired New York-based Structured Network Solutions Inc. (SNS), a provider of design, directory authentication services, IT security policy, design strategies, and storage solutions to government, non-governmental organizations, and not-for-profits. Orion is a portfolio company of DC-based private equity firm Potomac Equity Partners. 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.
STG Group Inc. announced that it has agreed to acquire Preferred Systems Solutions Inc. (PSS) in a deal worth $119 million. PSS is owned by CM Equity Partners. The acquisition, which is expected to closing during the first quarter of 2017, will be financed using a combination of debt and equity financing. PSS provides advanced computing, analytics, program and acquisition management, cyber and software solutions to over 25 government agencies including defense and Intelligence Community clients. STG is advised by Sagent Advisors.
Salient CRGT Inc. announced that it has agreed to acquire Information Innovators (Triple-i), a Springfield, Virginia-based provider of healthcare IT services to the federal government. Triple-i provides healthcare IT services, enterprise IT solutions, cloud services, and agile development to customers including 11 out of the 15 cabinet-level federal departments. The deal is expected to close within the first quarter of 2017. Both companies are owned by private equity firms with CRGT backed by Bridge Growth Partners LLC and Frontenac Co., and Triple-i by DFW Capital Partners.
Deal terms were not disclosed. Salient CRGT was advised by RBC Capital Markets and Sagent Advisors while Triple-i was advised by KippsDeSanto & Co.
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