In 2022, the GovCon landscape saw announcements and completions of merger-and-acquisition deals at privately held, publicly traded and private equity backed companies that sought to expand what they could offer to their federal customers.
Continuing reading below for Executive Mosaic editorial team’s rundown of transactions and insights from industry executives who helped steward the market’s most significant M&As this year.
Private equity firm Advent International will acquire and take Maxar Technologies (NYSE: MAXR) private for approximately $6.4 billion cash, which includes debt. The satellite imagery provider’s stockholders will receive $53.00 per share under the agreement.
“As a private company, we will have enhanced flexibility and additional resources to build on Maxar’s strong foundation, further scale operations and capture the significant opportunities in a rapidly expanding market,” said Dan Jablonsky, Maxar CEO and a recipient of the 2022 Wash100 Award.
Anticipated closing date: mid-2023
“With this acquisition, we will use the combined talents of more than 50,000 employees to drive continuous process improvement, enhance business operations and elevate the performance of this crucial national asset,” said L3Harris CEO Christopher Kubasik, a three-time Wash100 awardee.
Anticipated closing date: sometime in 2023
IBM (NYSE: IBM) agreed to purchase government technology services provider Octo from Arlington Capital Partners. Financial terms of the deal were not disclosed.
“The combination of Octo’s highly qualified and respected team with IBM’s consulting expertise, technical capabilities and strategic partner ecosystem will enable federal clients to transform faster and better serve citizens,” said John Granger, senior vice president of IBM’s consulting unit.
Anticipated closing date: Q4 2022
“LMI is thrilled to be entering the fast-paced, growing space market by acquiring Synaptech, which protects our nation’s national security assets and provides senior leaders with physics-backed decisional options,” said Doug Wagoner, LMI CEO and three-time Wash100 Award recipient.
The U.S. subsidiary of Italian aerospace and defense conglomerate Leonardo made its public market debut Nov. 29 on Nasdaq shortly after the merger with Israel-based RADA Electronic Industries. The deal was first announced June 21.
“We look forward to bringing Leonardo DRS’s mid-tier strength to the public markets with the addition of RADA’s leading tactical radar capabilities,” said William Lynn, chairman and CEO of Leonardo DRS.
Health IT company CNSI, a Carlyle portfolio company, and care management services provider Kepro announced Nov. 9 they agreed to merge into a new organization with the goal of supporting government-sponsored health care programs.
“The combination of CNSI and Kepro aligns with the strategic objectives of both companies to deploy technology-enabled products, solutions, and services that help our clients achieve their mission and better serve their priority populations,” CNSI CEO Todd Stottlemyer said.
Anticipated closing date: December 2022
“Booz Allen and EverWatch share a passion for the national security mission, advanced innovation, and technical excellence,” said EverWatch CEO John Hillen, a recipient of the Wash100 Award for 2015.
“We will deploy our significant government technology experience working with Mike Elias and rest of the CAES Space Systems team to accelerate growth and value proposition to customers,” Ramzi Musallam, Veritas CEO and a seven-time winner of the Wash100 Award.
Anticipated closing date: Q1 2023
Guidehouse, a Veritas Capital portfolio company, completed the acquisition of Gran Thornton’s public sector advisory practice in October. The deal was first announced Aug. 22.
“Looking ahead, we will continue to rapidly expand our business by investing in strategic opportunities to enhance our capabilities and drive growth,” said Scott McIntyre, Guidehouse CEO and a six-time Wash100 awardee.
“Combining ARA’s manufacturing expertise with SI2’s product development focus is a win for our customers and our two companies, enabling ARA to provide holistic, advanced Communications Solutions for our customers worldwide with particular focus in C5ISR market in the US,” said Logen Thiran, president and CEO of ARA.
In September, ManTech started a new chapter in the company’s 54-year existence, which includes two decades as a publicly traded company, with the completion of its sale to investment firm Carlyle in September through a $4.2 billion go-private transaction.
“We are proud of the leadership position we have built and believe we are well prepared to advance our business, our strategic plan and the value we provide to our customers and employees with the additional expertise of the Carlyle team,” said ManTech Chairman Kevin Phillips, a six-time Wash100 awardee.
QinetiQ Group‘s U.S. arm completed its $590 million purchase of Avantus Federal from NewSpring Holdings in November. The deal was first announced Aug. 5.
“Avantus’ elite talent, differentiated technology solutions, and dedication to mission complement our innovative culture. I am honored to lead a combined team that shares a focus on performance and a proven ability to be agile in impactful delivery at the speed of our customers’ missions,” said QinetiQ US CEO Shawn Purvis, a two-time recipient of the Wash100 Award.
Vectrus and The Vertex Company closed their all-stock merger in July to form a new government services provider called V2X (NYSE: VVX) with an estimated pro forma annual revenue of $3.4 billion. The transaction was first announced March 7.
“From a business perspective, we are a very different company together than either of the two predecessor companies were. We have the scale, we have the reach, we have the capabilities to touch a much broader set of clients and a much different set of missions that we can support,” Chuck Prow, V2X CEO and an eight-time recipient of the Wash100 Award, said in a video interview with Executive Mosaic.
Digital services company Ad Hoc announced in June its acquisition of Cascades Technologies, a provider of IT services to the federal government.
“We’re taking another step toward expanding what we can offer the federal government so that we can have an even larger impact on how the government builds and operates digital services,” Greg Gershman, co-founder and CEO Ad Hoc, wrote in a June 14 blog post.
In July, ICF (Nasdaq: ICFI) finalized its acquisition of health technology developer SemanticBits. The deal was first announced the previous month.
“This latest acquisition is in keeping with our strategy to complement organic growth with acquisitions that strengthen ICF’s position in key growth markets and provide meaningful revenue synergies over time,” ICF CEO John Wasson said.
In early June, Parsons (NYSE: PSN) announced the completion of its $400 million purchase of Xator, which provides support to government customers in critical infrastructure protection, national security and mission and training areas.
“This acquisition strengthens our position across our two complementary markets and continues our strategy of buying accretive, mission-focused companies aligned with global macroeconomic trends,” said Parsons CEO Carey Smith, a four-time recipient of the Wash100 Award.
Tetra Tech (Nasdaq: TTEK) acquired and added climate data analytics company Axiom to the consulting and engineering contractor’s government services group.
“The addition of Axiom Data Science expands our high-end advanced analytics capabilities in oceans and ecosystems to advance climate science for clients, including the National Oceanic and Atmospheric Administration and the National Aeronautics and Space Administration,” said Dan Batrack, chairman and CEO of Tetra Tech.
“It is an obvious next step in Gunnison’s growth to have CENTERPOINT’s technical expertise and laser-like focus on high-quality, differentiated solutions matched up with Gunnison’s mission focus and core values,” Gunnison CEO Gil Dussek said.
Aeyon, a portfolio company of Enlightenment Capital, announced in February the acquisitions of Manufacturing Technical Solutions and Marick Group in a move that adds engineering services and cloud-based products to Aeyon’s portfolio.
“These two companies bring complementary capabilities to Aeyon and bolster our position as a leading provider of innovative solutions that improve and accelerate the decision-making abilities of our customers,” CEO Sunny Singh said.
Germantown, Maryland-based Amentum announced the completion of its $1.9 billion cash purchase of PAE in February.
“We look forward to bringing the best people and the most differentiated solutions to support our clients’ success across defense and civilian agencies, while accelerating our growth in intelligence and technology services,” said John Vollmer, who served as Amentum’s CEO from February 2020 to March 2022.
Former PAE CEO and six-time Wash100 Award winner John Heller succeeded Vollmer, a seven-time Wash100 awardee, at the helm of Amentum on March 28.
“With ID Technologies, CACI can accelerate end-user mobility and the use of communication outside of secure government-run facilities using secure software-at-scale,” said John Mengucci, CACI CEO and a three-time Wash100 awardee.
“It is another step in helping our DoD customers modernize programs by leveraging open-source platform as a service concept to deliver mission critical software enablement for command and control (C2), autonomy and communications,” said Matt Jones, CEO of Sigma Defense.