ASGN (NYSE: ASGN) has closed its acquisition of Blackstone Technology Group’s federal division for $85M in cash.
Blackstone Federal, established in 2002, has approximately 100 technical and creative consultants who deliver cloud modernization, Agile application development, branding services, user experience design and cybersecurity support to government clients.
Blackstone Federal has been delivering technical support to the Department of Homeland Security and component agencies for more than 18 years and holds spots on DHS contract vehicles, including the Architecture, Development and Platform Technical Services blanket purchase agreement. It recorded approximately $44M in 2019 revenues and is expected to realize a 10 percent growth in 2020.
George Wilson, president of ECS and a 2020 Wash100 award winner, said ECS and Blackstone Federal share cultures that are focused on collaboration, customer and quick decision-making and have been delivering technologies and strategies to DHS client.
“This acquisition fits perfectly with ASGN’s hybrid growth and capital allocation strategy, to scale ECS to over $1 billion in revenue through a combination of strong organic growth and complementary acquisitions in strategic technologies, capabilities, customers, and contract areas that together will enable us to even further enhance the solutions we provide to our customers,” said Ted Hanson, president and CEO of ASGN.
Sullivan & Cromwell LLP advised ASGN on the deal’s legal aspect. DC Advisory and DLA Piper LLP respectively served as financial and legal advisers to Blackstone Technology Group.