Transactions
August 6 2018
KippsDeSanto & Co. Advises MacAulay-Brown, Inc.
KippsDeSanto & Co. is pleased to announce the sale of its client, MacAulay-Brown, Inc. (“MacB” or the “Company”) to Alion Science and Technology Corporation (“Alion”), a portfolio company of Veritas Capital (“Veritas”).
With its national capital headquarters in Vienna, VA and its corporate headquarters in Dayton, OH, MacB has established decades long customer relationships while providing advanced engineering solutions in mission critical, high-barrier-to-entry areas of National Security across the Department of Defense (“DoD”), the Intelligence Community (“IC”), and various Special Operations Commands (“SOCOM”). MacB’s differentiated engineering solutions portfolio includes Research, Development, Testing, and Evaluation (“RDT&E”); cyber tools and operations, secure cloud engineering, and data analytic tools development and deployment; cybersecurity – both offensive and defensive; and rapid prototype and quick-response production / manufacturing / integration.
Furthermore, the Company leverages its national network of integrated technical laboratories, Sensitive Compartmented Information Facilities (“SCIFs”), and its next-generation big data platform (“BDP”) to support the entire life-cycle of high value big data solutions from development through fielding. In a highly competitive government services industry, MacB’s high-barrier-to-imitation solution offerings, in combination with Alion’s, position the combined companies for continued growth in areas of national security mission significance.
Alion’s acquisition of MacB is a natural fit that enhances its technology and NextGen engineering capabilities, including “emerging technologies” in electronic warfare, artificial intelligence, cybersecurity, and cloud solutions; augments highly cleared customer access and Special Access Programs (“SAP”) contract concentration; and provides increased scale anchored by MacB’s revenue growth trajectory, contract win rates, and book to bill ratio.
We believe this transaction demonstrates several key trends in the federal M&A environment:
• Buyers are focusing on targets with entrenched positioning, including sole source contracts, longstanding incumbency, and customer intimacy, as well as well-funded customers and highly cleared mission-critical programs
• Highlights the demand for a rare asset with the complete suite of value drivers: scale, priority DoD / IC customer access, Full and Open (“F&O”) and sole source prime contracts, a proven leadership team, an established growth trajectory, Intellectual Property (“IP”), and differentiated capabilities
• Premiums are placed on acquisition targets that provide complementary solutions within an expanded customer footprint, particularly within the growing National Security / DoD end markets
• With today’s robust capital markets, private equity – via new platforms and add-ons to existing portfolio companies – are successfully competing against larger public strategics even for the most desirable assets
LEAD INVESTMENT BANKERS
KippsDeSanto & Co. is pleased to announce the sale of its client, MacAulay-Brown, Inc. (“MacB” or the “Company”) to Alion Science and Technology Corporation (“Alion”), a portfolio company of Veritas Capital (“Veritas”).
With its national capital headquarters in Vienna, VA and its corporate headquarters in Dayton, OH, MacB has established decades long customer relationships while providing advanced engineering solutions in mission critical, high-barrier-to-entry areas of National Security across the Department of Defense (“DoD”), the Intelligence Community (“IC”), and various Special Operations Commands (“SOCOM”). MacB’s differentiated engineering solutions portfolio includes Research, Development, Testing, and Evaluation (“RDT&E”); cyber tools and operations, secure cloud engineering, and data analytic tools development and deployment; cybersecurity – both offensive and defensive; and rapid prototype and quick-response production / manufacturing / integration.
Furthermore, the Company leverages its national network of integrated technical laboratories, Sensitive Compartmented Information Facilities (“SCIFs”), and its next-generation big data platform (“BDP”) to support the entire life-cycle of high value big data solutions from development through fielding. In a highly competitive government services industry, MacB’s high-barrier-to-imitation solution offerings, in combination with Alion’s, position the combined companies for continued growth in areas of national security mission significance.
Alion’s acquisition of MacB is a natural fit that enhances its technology and NextGen engineering capabilities, including “emerging technologies” in electronic warfare, artificial intelligence, cybersecurity, and cloud solutions; augments highly cleared customer access and Special Access Programs (“SAP”) contract concentration; and provides increased scale anchored by MacB’s revenue growth trajectory, contract win rates, and book to bill ratio.
We believe this transaction demonstrates several key trends in the federal M&A environment:
• Buyers are focusing on targets with entrenched positioning, including sole source contracts, longstanding incumbency, and customer intimacy, as well as well-funded customers and highly cleared mission-critical programs
• Highlights the demand for a rare asset with the complete suite of value drivers: scale, priority DoD / IC customer access, Full and Open (“F&O”) and sole source prime contracts, a proven leadership team, an established growth trajectory, Intellectual Property (“IP”), and differentiated capabilities
• Premiums are placed on acquisition targets that provide complementary solutions within an expanded customer footprint, particularly within the growing National Security / DoD end markets
• With today’s robust capital markets, private equity – via new platforms and add-ons to existing portfolio companies – are successfully competing against larger public strategics even for the most desirable assets
LEAD INVESTMENT BANKERS
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