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KippsDeSanto & Co. Advises Managed IT Services and Solutions Firm OAO Technology Solutions on its Acquisition by Platinum Equity

KippsDeSanto & Co. is pleased to send you the attached press release announcing the acquisition of our client, OAO Technology Solutions, Inc. (“OAOT”), a portfolio company of J.F. Lehman & Company, by Platinum Equity, LLC (“Platinum”). The acquisition deepens Platinum’s presence in the IT services market and affords OAOT a platform to broaden its service offerings, customer base, and addressable markets. The transaction closed on January 15, 2010.

Headquartered in Greenbelt, MD, OAOT is a provider of lifecycle IT solutions and services for Fortune 500 corporations and global outsourcing firms worldwide. OAOT is a widely acknowledged market leader in data center
and infrastructure management, application outsourcing, and staffing solutions. OAOT helps customers achieve greater agility and efficiencies in management of critical infrastructures and technologies and to maximize human assets.

We believe this transaction represents a number of key trends in the M&A market for IT services and solutions firms:

  • Heightened acquisition interest in firms operating in or around IT infrastructure assets, such as the data center, that enable customers’ mission critical business processes, and drive operational effectiveness and cost efficiencies
  • Buyer attraction to firms having long-term, entrenched relationships with blue chip customers
  • Continued M&A activity by financial sponsors, despite continued cautious credit markets

KippsDeSanto & Co. is an investment bank focused on delivering exceptional M&A and financing transaction results for leading technology and professional services companies in the government, defense, and commercial IT markets. 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.

PRESS RELEASE

Platinum Equity Acquires OAO Technology Solutions, Inc.

Los Angeles, CA and Greenbelt, MD — January 19, 2010 — Platinum Equity announced today it has acquired OAO Technology Solutions, Inc. (“OAOT”), from an affiliate of J.F. Lehman & Company and the other stockholders of OAOT. Terms of the transaction were not disclosed.

OAOT provides managed IT services and solutions for Fortune 500 corporations, global outsourcers and government agencies.

“OAOT has long-standing relationships with valued customers, an outstanding international workforce and a reputation for delivering exceptional customer service,” said Jacob Kotzubei, the partner at Platinum that is leading the OAOT investment. “Throughout the world the need for high-quality cost-effective managed IT services is growing and OAOT offers a full-range of solutions to meet that increasing demand.”

A team of Platinum in-house operations specialists is now working with OAOT management to develop a long-term plan and transition the business into Platinum’s portfolio.

“In the midst of a challenging worldwide economic climate, over the last three years OAOT has expanded its market share, enhanced its commercial IT services offerings, and significantly improved the company’s operational effectiveness, profitability and financial performance,” said Sidney E. Fuchs, OAOT president and chief executive officer. “This acquisition provides incredible momentum and creates a platform for rapid growth as we join the top-tier group of IT services companies in the Platinum Equity portfolio.”

Mr. Kotzubei explained that acquiring OAOT is a natural investment for Platinum, given the firm’s history of investing in IT companies.

“We know and understand the industry well and have had a lot of success creating value in this space,” explained Mr. Kotzubei.

Jeff Fine and Jared Jensen of Kirkland & Ellis LLP served as legal advisers to Platinum Equity on the acquisition of OAOT.

Gibson, Dunn & Crutcher LLP served as legal advisor, and KippsDeSanto & Co. and The Chesapeake Group served as financial advisors to J.F. Lehman & Company and the OAOT Board of Directors.

About OAO Technology Solutions, Inc.
OAOT (www.oaot.com) is a global leader in Managed IT Services and Solutions to Fortune 500 corporations, global outsourcers and government agencies. The Company’s expertise includes applications outsourcing, data center and infrastructure management and staffing solutions. Headquartered in Greenbelt, Maryland, our 1,600 worldwide employees are located throughout the United States, Canada and Europe.

About Platinum Equity
Platinum Equity is a global M&A&O. firm specializing in the merger, acquisition and operation of companies that provide services and solutions to customers in a broad range of business markets, including information technology, telecommunications, logistics, metals services, manufacturing and distribution. Since its founding in 1995 by Tom Gores, Platinum Equity has completed nearly 100 acquisitions with more than $27.5 billion in aggregate annual revenue at the time of acquisition. For more information, go to www.platinumequity.com.

About J.F. Lehman & Company
J.F. Lehman & Company is a leading middle-market private equity firm focused exclusively on the defense, aerospace and maritime sectors. The firm has offices in New York, Washington and London. For more information about J.F. Lehman & Company, please visit www.jflpartners.com.

Contacts:
Platinum Equity
Cathy Melcher, Vice President Marketing Communications
OAO Technology Solutions, Inc.
(703) 327-4307
cmelcher@oaot.com

OAO Technology Solutions
Dan Whelan
Platinum Equity
(310) 282-9202
dwhelan@platinumequity.com

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