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CSA Acquires Capstone, Secures Investment From Blue Delta; Lee Arroyo, Phil Nolan Quoted

Client Solution Architects, a provider of digital transformation services to the Department of Defense and other federal government clients, has purchased Capstone for an undisclosed sum as part of efforts to expand its portfolio and footprint in the federal information technology services market.

CSA said Thursday the combined company is expected to have over $100 million in revenue and will provide enterprise IT platforms and services in DevOps, data management, IT modernization, process improvement and automation, among other areas.

“Combining with Capstone, we immediately establish a broader set of strategic digital transformation services that better support our combined Navy, Army and Joint DOD client base, creates a unified team of likeminded and culturally aligned professionals and allows us to address emerging modernization and mission needs across all Federal departments and agencies,” said CSA CEO Amy Bleken.

Dan Fox, chief operating officer of Capstone, will become COO of the combined company.

Blue Delta Capital Partners, a venture capital firm focused on the U.S. federal government services market, also made an investment in CSA as part of the transaction.

“Blue Delta’s successful track record and government services expertise made them the perfect partner for CSA and we are excited to have them on our team as we continue to execute on our mission and the customers we serve,” said Lee Arroyo, founder and chairman of the board at CSA.

“Our team at Blue Delta has been very impressed with the reputation that CSA has earned with its customers and in the Federal marketplace” said Phil Nolan, a general partner at Blue Delta.

Nolan added that Blue Delta looks forward to supporting CSA’s leadership team and the combined company’s growth initiatives.

CSA said it also received senior debt from Atlantic Union Bank in addition to the investment.

Holland & Knight acted as CSA’s legal counsel in both transactions. and Grant Thornton, Halyard Associates, Brown & Brown and USI served as advisers to CSA. 

G Squared Capital Partners advised Capstone in the transaction. Cooley was Blue Delta Capital Partners’ legal adviser.

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