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Investment Firm Platinum Equity Inks Deal to Buy PAE

PAE logoLos Angeles-based investment firm Platinum Equity has agreed to purchase Arlington, Va.-based government services contractor PAE from New York City-headquartered private equity firm Lindsay Goldberg for an undisclosed sum in a deal the parties expect to close by February 2016, the companies said Monday.

Lindsay Goldberg purchased PAE for $350 million in 2011 from Lockheed Martin (NYSE: LMT), which owned the global logistics and services provider for the five prior years.

PAE recorded approximately $1.4 billion in revenue during the federal government’s 2014 fiscal year, according to Bloomberg Government.

Originally founded in 1955, PAE has made four acquisitions under Lindsay Goldberg’s ownership and completed two deals in 2015 for national security services contractor A-T Solutions and the former global security and solutions business of US Investigations Services.

PAE purchased the former Computer Sciences Corp. (NYSE: CSC) applied technology division in 2013 for around $175 million in 2013 and acquired full ownership of the Defense Support Services business in 2011 from Lockheed and Day & Zimmerman, previous partners in the DS2 joint venture.

Platinum Equity was founded in 1995 and says it owns more than 25 companies with more than $6 billion in assets, while Lindsay Goldberg estimates it holds more than $14 billion in equity capital.

According to Reuters, Platinum Equity was one of three investment firms that participated in an auction process for PAE.

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