Roundup of 2022: GovCon’s Top 22 M&A Transactions With Business Leaders’ Strategic Outlook

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.

Maxar to Go Private in $6.4B Deal

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

L3Harris Strikes $4.7B Deal to Acquire Aerojet Rocketdyne

Aerojet Rocketdyne Holdings (NYSE: AJRD) agreed to be acquired by L3Harris Technologies (NYSE: LHX) in a deal worth approximately $4.7 billion, or $58 per share in cash.

“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 Eyes Federal IT Support Expansion Through Octo Purchase

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 Marks Space Market Entry With Synaptech Acquisition

Nonprofit management consultancy LMI announced early in December its acquisition of space defense software company Synaptech for an undisclosed sum.

“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.

Leonardo DRS Becomes Public Defense Tech Company After RADA Merger

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.

CNSI, Kepro Eye Expanded Health Care Offerings via Merger

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 Closes EverWatch Acquisition

In October, Booz Allen Hamilton (NYSE: BAH) finalized its purchase of fellow technology contractor EverWatch from investment firm Enlightenment Capital. The deal was first announced March 16.

“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.

Veritas Pushes Into Space Tech Sector With Buy of CAES Unit

Private equity firm Veritas Capital agreed to buy the Colorado Springs-based space systems business of CAES. Financial terms of the deal were not disclosed.

“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 Strengthens Financial Services, IT Offerings With Grant Thornton Purchase

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.

ARA Finalizes SI2 Technologies Acquisition

Antenna Research Associates wrapped up its purchase of military communications and signal management systems maker SI2 Technologies in September.

“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.

ManTech Completes $4.2B Sale to Carlyle

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 US Closes Avantus Federal Buy

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.

V2X Emerges From Vectrus-Vertex Combination

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.

Ad Hoc Expands Federal IT Business With Cascades Technologies Buy

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.

ICF Grows Health IT Offerings Through SemanticBits Acquisition

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.

Parsons Closes Xator Acquisition

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 Acquires Axiom Data Science

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.

Gunnison Buys Cybersecurity Firm Centerpoint

Cybersecurity technology provider Centerpoint was acquired by Gunnison Consulting Group in February.

“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 Eyes Federal Technical Support Growth With MTS, Marick Acquisitions

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.

Amentum Completes Acquisition of PAE

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.

CACI Buys ID Technologies for $225M

In late January, CACI International (NYSE: CACI) disclosed its acquisition of ID Technologies from investment firm The Acacia Group for approximately $225 million.

“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.

Sigma Defense Buys Solute for DOD Footprint Expansion Strategy

Sigma Defense, a portfolio company of Sagewind Capital, bought San Diego-based software development and systems engineering company Solute in January.

“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.

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