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Mehul Sanghani CEO Octo

Octo, Sevatec Merge to Create Federal IT Modernization Support Provider; Mehul Sanghani Quoted

Octo, a Reston, Virginia-based government information technology services provider, and software development company Sevatec have merged to form a combined organization that will provide tech platforms and services to help federal government clients address complex IT challenges.

The combined entity is expected to record approximately $300M in annual revenue and operate with about 1,100 employees focused on serving clients across defense, national security, intelligence, civilian and federal health sectors, Octo said Tuesday.

The combined firm’s proprietary platforms include Agile software engineering, blockchain, artificial intelligence, open source software development and DevSecOps offerings to be managed within Octo’s research and development facility oLabs.

Mehul Sanghani, founder and CEO of Octo, said the transaction creates a “pure-play” modernization and platforms provider in support of the federal government and its missions.

Sanghani will serve as CEO of the combined firm, while Sevatec Founder and CEO Sonny Kakar will assume the role of head of strategy and vice chair of the board.

“In a market full of multi-billion-dollar organizations that provide a wide variety of traditional products and services, customers are seeking highly specialized, mid-sized technology partners with deep experience in digital modernization, which is exactly what the combination of Octo and Sevatec offers,” said Kakar.

Tim May, chief growth officer at Sevatec, will become CGO of the combined entity, and Chuck Schefer, executive vice president at Sevatec, will serve as EVP overseeing programs at several agencies.

Baird and Pillsbury Winthrop Shaw Pittman respectively served as Sevatec’s financial and legal advisers in the merger, while Sheppard Mullin advised Octo on the transaction’s legal aspect.

“Sevatec has emerged as a formidable mid-tier player that is driving innovation and technology modernization to the Federal Government. Sevatec is a great success story and case study for a company graduating out of the small business program to winning large scale, strategic contracts in a competitive environment,” Alex Sevilla, a managing director for Baird’s government and defense team, told GovCon Wire.

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