PAE announced that it has agreed to acquire FCi Federal, an Ashburn, Virginia-based provider of services for immigration and national security including adjudication support, eligibility verification and business process outsourcing to government agencies. FCi operates in over 40 states and has nearly 5,000 employees and subcontractors. PAE is owned by private equity firm Platinum Equity which acquired the business in 2016.
Houlihan Lokey advised FCi on the transaction, which is expected to close in the next 45 days. Deal terms were not disclosed.
Constellis announced that it has agreed to acquire Centerra Group LLC, a government and critical infrastructure services company owned by Alvarez & Marsal Capital. Constellis is also private equity-owned, having been acquired by Apollo Global Management in 2016. Based in Palm Beach Gardens, Florida and with approximately 9,000 employees worldwide, Centerra provides security, fire suppression, and base operations support to US Government clients. The company also provides humanitarian focused services and training to the United Nations and foreign governments.
The transaction is expected to close in the second quarter of 2017. Deal terms were not disclosed. Financing for the deal is being provided by Credit Suisse, Barclays, Citi and Goldman Sachs.
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.
Drone USA Inc. announced that it has acquired Howco Distributing Corp., a provider of construction, transportation, mining and heavy equipment parts to both commercial and government clients. In 2012, Howco won DLA’s Bronze Supplier Award. The company reported 2015 revenues of $23.4 million and EBITDA of $1.78 million.
Howco was acquired for $3.5 million using $2.6 million in cash, a promissory note for $900K and 500K warrants with an exercise price of $0.01 per share. Wellington Shields & Co. LLC was the lead placement agent.
MARCOA Publishing announced that it has acquired Automated Housing Referral Network (AHRN.com), an online marketplace for military housing. AHRN.com helps landlords, property managers and real estate professionals connect with military tenants and home buyers. 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.
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.
Centerra Group LLC announced that it has acquired The Development Initiative (TDI), a provider of commercial and humanitarian landmine clearance, unexploded ordinance disposal, training and remote logistics solutions in locations across Africa and the Middle East. Based in Zimbabwe, TDI provides its services to companies, government agencies, and NGO’s. Since 2005, the company has cleared over 26,000 km of roads and removed over 46,000 pieces of unexploded ordinance. Deal terms were not disclosed.
Xator Corporation announced that it has acquired TSM Corporation, a provider of training, engineering, and logistics services to Special Operations, Defense, and Law Enforcement customers. Deal terms were not disclosed.
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