Government services contractors Salient Federal Solutions and CRGT have agreed to merge under a deal of an undisclosed sum in a push to expand their 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 Partners and Chicago-based investor Fronteac will own equal ownership stakes in Salient CRGT and other co-investors will also own part of the new company, Salient CEO Brad Antle told GovCon Wire.
Bridge Growth purchased majority ownership of CRGT from Veritas Capital in January and Fronteac helped launch Salient in 2009 with a $100 million equity investment.
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 with 1, 700 employees in agile software development, data analytics, mobility and cybersecurity.
Salient CRGT 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‘s CIO-SP3, the Department of Homeland Security‘s Eagle II and the Treasury‘s TIPSS-4.
Antle will hold the CEO title at Salient CRGT; CRGT CEO Tom Ferrando will serve as president; and Bridge Growth Managing Principal Kevin Parker will act as chairman of the board of directors.
