Transactions
December 14 2021
KippsDeSanto & Co. Advises B3 Group, Inc. on its sale to Octo, a Portfolio Company of Arlington Capital Partners
KippsDeSanto & Co. is pleased to announce the sale of its client, B3 Group, Inc. (“B3” or the “Company”) to Octo, a portfolio Company of Arlington Capital Partners.
Headquartered in Herndon, Virginia, B3 is a leading provider of holistic digital transformation services delivering forward leaning digital thought leadership, deep technical expertise, cutting edge Salesforce and other low-code / no-code technologies (including Microsoft Power Platform, Pega, and ServiceNow) domain knowledge and a range of next-gen IT capabilities that drive enterprise-wide digital transformation initiatives across the Department of Veterans Affairs (“VA”) to further improve health outcomes and support for veterans and military families.
Leveraging its differentiated capabilities, as well as its franchise position within the VA and as an established Transformation Twenty-One Total Technology Next Generation (“T4NG”) contract holder, B3 has established itself as the go-to digital partner with a significant footprint across the entire VA enterprise, including the Digital Transformation Center (“DTC”), which is a marquee $686M program to enable and deliver agency-wide access to modernized SaaS, PaaS, and emerging digital products, and technology platform management. Combined with over 350 certified subject matter experts and employees, the Company has been critical to its customers achieving next-generation, dynamic capabilities that facilitate information sharing and optimization of metadata and improve overall business performance.
The acquisition adds B3’s deeply embedded VA relationship and past performance to Octo’s broader federal health footprint, and a differentiated suite of digital services and capabilities, including Salesforce, low-code / no-code, data analytics, and cloud engineering.
We believe this transaction demonstrates several key trends in the healthcare IT and government technology M&A environment:
• Continued trend of investment and emphasis placed on large, growing federal health IT market given favorable budgetary environment
• Strong demand for access to VA via major contract vehicles and task orders (i.e., T4NG and $686M DTC Task Order) to complement and bolster existing Federal health practices
• Significant value attributed to targets with highly differentiated digital transformation offerings
• Private equity and private equity-backed buyers continue to actively invest in the government services market and pursue targets that add immediate scale and customer access, next-gen capabilities, and a talented workforce with deep subject matter expertise
LEAD INVESTMENT BANKERS
Kevin P. DeSanto
Marc B. Marlin
KippsDeSanto & Co. is pleased to announce the sale of its client, B3 Group, Inc. (“B3” or the “Company”) to Octo, a portfolio Company of Arlington Capital Partners.
Headquartered in Herndon, Virginia, B3 is a leading provider of holistic digital transformation services delivering forward leaning digital thought leadership, deep technical expertise, cutting edge Salesforce and other low-code / no-code technologies (including Microsoft Power Platform, Pega, and ServiceNow) domain knowledge and a range of next-gen IT capabilities that drive enterprise-wide digital transformation initiatives across the Department of Veterans Affairs (“VA”) to further improve health outcomes and support for veterans and military families.
Leveraging its differentiated capabilities, as well as its franchise position within the VA and as an established Transformation Twenty-One Total Technology Next Generation (“T4NG”) contract holder, B3 has established itself as the go-to digital partner with a significant footprint across the entire VA enterprise, including the Digital Transformation Center (“DTC”), which is a marquee $686M program to enable and deliver agency-wide access to modernized SaaS, PaaS, and emerging digital products, and technology platform management. Combined with over 350 certified subject matter experts and employees, the Company has been critical to its customers achieving next-generation, dynamic capabilities that facilitate information sharing and optimization of metadata and improve overall business performance.
The acquisition adds B3’s deeply embedded VA relationship and past performance to Octo’s broader federal health footprint, and a differentiated suite of digital services and capabilities, including Salesforce, low-code / no-code, data analytics, and cloud engineering.
We believe this transaction demonstrates several key trends in the healthcare IT and government technology M&A environment:
• Continued trend of investment and emphasis placed on large, growing federal health IT market given favorable budgetary environment
• Strong demand for access to VA via major contract vehicles and task orders (i.e., T4NG and $686M DTC Task Order) to complement and bolster existing Federal health practices
• Significant value attributed to targets with highly differentiated digital transformation offerings
• Private equity and private equity-backed buyers continue to actively invest in the government services market and pursue targets that add immediate scale and customer access, next-gen capabilities, and a talented workforce with deep subject matter expertise
LEAD INVESTMENT BANKERS
Kevin P. DeSanto
Marc B. Marlin
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