KippsDeSanto & Co. is pleased to send you the attached press release announcing the acquisition of our client, Harding Security Associates (“HSA”), by private equity group GTCR and its government portfolio company, Six3 Systems Inc. (“Six3″). The transaction closed on July 21, 2009. This is the first acquisition for Six3, which is led by former ManTech President and COO Bob Coleman.
Based in McLean, VA, HSA is a leading provider of identity intelligence, CI, HUMINT, and security services to the federal government. With more than 350 highly trained employees, HSA is at the forefront of the Department of Defense’s (“DoD”) biometric-enabled intelligence analysis and forensics mission. The Company also provides mission-critical intelligence and counter-intelligence training and security services to the DoD and key civilian agencies. KippsDeSanto & Co. acted as exclusive financial advisor to HSA in this transaction.
We believe this transaction represents a number of key trends in government services M&A:
- As the nation maintains its focus on protecting its homeland, expect the federal government to continue funding intelligence operations and large scale programs to integrate the analysis and collection efforts of biometric information internationally, in the maritime domain, at the border, and domestically.
- Given its size, performance, and focus, HSA received very strong market interest from both strategic buyers and private equity groups, the latter of which has increased its activity in the last three months as credit markets have continued to stabilize.
- The M&A market for leading government services firms has materially rebounded over the past few months and continues to gain strength with the HSA acquisition, which represents the 25th government services transaction in 2009 (and fourth private equity-backed deal announced since May).
KippsDeSanto & Co. is an investment bank focused on delivering M&A and financing transaction results for leading technology and defense companies. For more information on KippsDeSanto & Co., please visit www.kippsdesanto.com.
We welcome the opportunity to discuss how KippsDeSanto & Co. can help you achieve your strategic objectives. For more information on this particular transaction, please contact one of our senior professionals.
GTCR and Six3 Systems Announce Agreement to Acquire Harding Security Associates
CHICAGO, June 25, 2009 – GTCR, one of the nation’s leading private equity firms, and Six3 Systems, Inc. (“Six3″), a GTCR portfolio company that specializes in providing national security and defense intelligence services, today announced a definitive agreement to acquire Harding Security Associates, Inc. (“HSA”).
HSA is a leading provider of identity intelligence, forensics analysis and security services to the federal government. With more than 350 highly trained employees, HSA is at the forefront of the Department of Defense’s (“DoD”) biometric-enabled intelligence analysis and forensics mission. The Company also provides mission-critical intelligence and counter-intelligence training and security services to the DoD and key civilian agencies.
“We view this deal as a critical first step in achieving our long term objective of building a highly specialized national security services provider that is focused on solving our nation’s most pressing security challenges domestically and abroad,” said Robert Coleman, Chief Executive Officer of Six3. “HSA is working at the heart of the identity intelligence and forensics mission, and I look forward to continuing to build that capability under Six3 Systems.”
“Since we announced the formation of Six3, we have actively targeted providers of specialized services in high-growth areas within the defense budget. We believe HSA fits squarely within this strategy,” added GTCR Principal Craig Bondy. “GTCR and Six3’s investment in HSA is an excellent example of our partnering with an industry-leading executive and pursuing strategic acquisitions.”
“I am very pleased to have Harding Security Associates join forces with Six3 Systems,” commented Major General Robert A. Harding, USA (Ret.), Chief Executive Officer of HSA. “I believe this acquisition will provide enhanced career opportunities for our people while continuing our track record of outstanding service and support to our customers.”
Kirkland & Ellis LLP served as legal counsel to GTCR and Six3 Systems. KippsDeSanto & Co. acted as exclusive financial advisor to HSA. The transaction, which represents the first acquisition for Six3 Systems, is expected to close in July.
About Six3 Systems
Six3 Systems, headquartered in Fairfax, Virginia, is a company focused on acquiring government services providers with a focus on national security. For more information about Six3 Systems email firstname.lastname@example.org.
Founded in 1980, GTCR Golder Rauner, LLC is a private equity investment firm and long-term strategic partner for outstanding management teams. The Chicago-based firm pioneered the investment strategy of identifying and partnering with exceptional executives to acquire and build companies through a combination of acquisitions and strong internal growth. GTCR currently manages more than $8 billion of equity capital invested in a wide range of companies and industries. More information about GTCR can be found at www.gtcr.com.