BITS will operate as a subsidiary and Founder and CEO Dan McQuay will continue to lead the business under the new ownership, Cognosante said Thursday.
McLean, Virginia-based Cognosante provides technology platforms, consulting and business process outsourcing support to government health agencies.
BITS is a service-disabled, veteran-owned small business based in Falls Church, Virginia, that provides lifecycle IT consulting support services to the public sector.
BITS in March was awarded a position on the Department of Veterans Affairs’ potential 10-year, $22.3 billion Transformation Twenty-One Total Technology Next Generation contract vehicle that covers IT modernization support services for VA and other federal agencies.
Michele Kang, founder and CEO of Cognosante, said the transaction is part of Cognosante’s growth strategy in the public health sector.
Cognosante funded the deal through an expanded line of credit the company secured from Bank of America Merrill Lynch and Capital One.