Government services contractors Salient Federal Solutions and CRGTÂ have agreed to mergeÂ under aÂ deal of an undisclosed sum in a push to expand theirÂ information technology modernization and business intelligence services to federal and other public sector agencies.
The companies said Tuesday they expect to close the transaction early in the fourth quarter of this calendar year and the combined entity will operate as “Salient CRGT.”
New York City-based private equity firm Bridge Growth PartnersÂ and Chicago-based investor FronteacÂ will own equal ownership stakes in Salient CRGT andÂ otherÂ co-investors will also own part of the new company, Salient CEO Brad AntleÂ toldÂ GovCon Wire.
Fronteac also helped start the contractor then known as SI International in 1998 that went public in 2009 and was purchased by Serco Group in 2008 for approximately $525 million cash.
Salient and CRGT estimate the combined company to generate nearly $375 million in revenue withÂ 1, 700 employees in agile software development, data analytics, mobility and cybersecurity.
Salient CRGTÂ will also hold positions on contract vehicles such as the General Services Administration‘s Alliant, the Defense Information Systems Agency‘s Encore, the National Institutes of Health‘sÂ CIO-SP3, the Department of Homeland Security‘sÂ Eagle II and the Treasury‘s TIPSS-4.
AntleÂ will hold the CEOÂ title at Salient CRGT; CRGT CEOÂ Tom Ferrando will serve as president; and Bridge Growth Managing Principal Kevin Parker will act as chairman of the board of directors.