DLH Buys Public Health Research Org Social & Scientific Systems; Zachary Parker Quoted

Zachary Parker, DLH president and CEO

Health care services contractor DLH Holdings (Nasdaq: DLHC) has purchased Silver Spring, Md.-based public health research organization Social & Scientific Systems for $70M in cash.

Zachary Parker, DLH president and CEO, said in a statement published Monday the acquisition aligns with DLH’s expansion strategy for its public health and life sciences area, enabling the company to bring scale and diversify its portfolio to support growth efforts.

“With over 40 years in business, SSS is a nationally-recognized technology-enabled health research organization that collects, manages and analyzes large-scale health data in support of critical public initiatives – complementing and broadening the markets we serve within the federal government,” Parker added.

Founded in 1978, SSS has approximately 400 employees and uses data analytics and other information technology platforms to support federal health agencies across clinical and biomedical research, health policy, public health and epidemiology research and program evaluation areas.

DLH will operate SSS as a wholly owned subsidiary under the leadership of Kevin Beverly, current president and CEO of SSS.

SSS had a backlog of approximately $346M of which $40M was funded. DLH expects the acquired firm to contribute about $65M in annual revenue.

DLH funded the transaction through a five-year secured bank credit facility worth $95M with First National Bank of Pennsylvania acting as agent and M&T Bank and F.N.B. Capital Markets as joint lead arrangers.

KippsDeSanto & Co. served as DLH’s financial adviser in the transaction, while Becker & Poliakoff LLP and Hogan Lovells US LLP acted as the firm’s legal advisers. DLH also received consulting support from the Avascent Group, Lockton Companies and Baker Tilly.

Houlihan Lokey advised SSS on the deal’s financial aspect and Saul Ewing Arnstein & Lehr LLP acted as the company’s legal counsel.

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