Government & Public Sector Acquisitions in 2024

Sagewind Capital LLC made a majority investment in Sabel Systems Technology Solutions LLC, a Dayton, Ohio–based provider of digital engineering, modeling & simulation, and sustainment solutions for the U.S. Department of Defense and other government customers. The partnership will support Sabel’s growth in digital engineering and cyber offerings and positions the company to expand via internal investment and acquisitions as part of Sagewind’s government-technology platform strategy.

Michael Peterman, owner of P&S Solutions, acquired majority stock in The Oryza Group, LLC effective April 22, 2024. The Oryza Group, a Douglasville, Georgia-based federal services firm providing IT, logistics and management services, will remain a separate entity with Joe Lorfano staying on as Executive Vice President and minority owner.

Radiance Technologies and Ignite Fueling Innovation have formed a new joint venture, Radiance Ignite Technologies, to combine capabilities in systems engineering, AI/ML, directed energy, electromagnetic spectrum operations, and space operations for U.S. government customers. The partnership, headquartered in Huntsville, Alabama, aims to deliver more comprehensive technical intelligence and mission engineering solutions to defense and intelligence clients.

Everlane Equity Partners, a Boston-based private equity firm, has made a strategic investment in Monument Advocacy to support the firm’s growth, expand capabilities, and enter additional geographic markets and policy areas. Monument’s existing leadership — CEO John Murray and Founder C. Stewart Verdery, Jr. — will continue to operate the business as it scales its government relations, public affairs, and strategic communications offerings.

Jacobs completed the spin-off of its Critical Mission Solutions and Cyber & Intelligence government services businesses and merged them with Amentum Parent Holdings LLC to form independent, publicly traded Amentum Holdings, Inc. Amentum began trading on the NYSE as AMTM and the transaction leaves Jacobs focused on its remaining data and next-generation digital technologies businesses while creating a scaled government services company.

Cydecor, an award-winning veteran-owned national security technology firm, has acquired Artel LLC, a Herndon-based provider of satellite and terrestrial mission-critical communications, IT and cybersecurity services, from TPG. The acquisition expands Cydecor's technical capabilities — including global SATCOM, terrestrial connectivity and a 24/7 NOC — to better serve U.S. national security and defense customers.

DC Capital Partners has made a control investment in C5MI Insight, a Jacksonville-based digital modernization and supply chain transformation provider, with C5MI founders reinvesting equity. The partnership will fund C5MI's continued investment in supply chain and logistics services and technologies to expand its work across U.S. Government (federal and state) and commercial clients.

Renovus Capital Partners has acquired QualX Corporation, a Springfield, Virginia-based provider of records and information management, digital transformation, and business process improvement services to U.S. federal agencies. Renovus will support QualX in investing in technology, expanding the team, pursuing strategic acquisitions, and extending the company's federal footprint. Financial terms were not disclosed.

Funds affiliated with Madison Dearborn Partners (MDP) have made a strategic growth investment in Harmonia Holdings Group to accelerate the company's expansion as a digital transformation provider to the U.S. Federal Government. As part of the transaction, industry veteran Damon Griggs joins Harmonia as CEO and Chairman and Jon Brooks joins as Chief Business and Legal Officer; Harmonia's founders retain significant ownership. Financial terms were not disclosed.

NEOGOV has acquired Background Solutions and its Background Assistant product and relaunched it as Vetted, a background investigation software integrated with NEOGOV's public safety platform PowerDMS and applicant tracking system Insight. The acquisition expands NEOGOV's capabilities in public safety hiring by digitizing and streamlining background investigations for law enforcement and other public safety agencies.

Volaris Group, an operating group of Constellation Software Inc., acquired IDS, a Brazilian provider of public management software for municipalities. IDS will operate as an independent business unit within Volaris' Latam & Iberia portfolio, joining to expand Volaris' public-sector software capabilities in Brazil.

Markon, a Sterling Investment Partners-backed federal government consulting firm, has acquired the ASEC family of companies (ASEC) to expand its capabilities across the Intelligence Community and Department of Defense. ASEC will operate as an independent subsidiary until integration in 2025, and the deal reinforces Markon’s expertise in systems engineering, program and financial management, cybersecurity, and software development.

Accela has acquired OpenCounter to integrate its applicant-facing permitting and licensing tools into Accela’s cloud platform, aiming to simplify the permit application experience for residents, businesses, and event organizers. The deal enhances Accela’s civic technology capabilities and expands its offering for local and state governments.

Madison Dearborn Partners (MDP) has made a strategic growth investment in Omni Federal, a founder-led provider of mission and enterprise software for the U.S. Department of Defense and the Intelligence Community. Omni's management will retain a significant ownership stake as MDP partners with the company to scale operations, expand capabilities, and pursue inorganic growth opportunities.

Michael Baker International has acquired Digital Data Technologies, Inc. (DDTI) and combined DDTI with its DATAMARK public safety division to launch DATAMARK Technologies, offering integrated NG9-1-1 location and GIS data management solutions. The combination expands Michael Baker's GovTech and public safety capabilities—adding indoor mapping, LiDAR and digital twin technologies—to deliver a unified solution for emergency response and GIS data interoperability.

Bernhard Capital Partners' government services platform has acquired Apogee Engineering, LLC, a government technology solutions provider focused on digital transformation, systems engineering, adaptive acquisition and program management. Financial terms were not disclosed; the acquisition is an add-on to BCP's government services platform (established via the 2023 Duotech Services acquisition) and is intended to expand capabilities in technology integration, modernization and cybersecurity for federal clients.

Macquarie Capital's Growth and Technology team has made a growth investment in Earth Resources Technology (ERT), a Laurel, Maryland–based data systems and technology company serving U.S. federal agencies. The founders will remain with the business and Macquarie will take board seats to support ERT as it expands its client base, capabilities and service offerings into adjacent markets.

DC Capital Partners Management, LP has made a controlling investment in AstreaX, a provider of software development and implementation services for DMV and government IT modernization. The investment will support AstreaX's expansion of its IT modernization offerings, digital identity and super-portal solutions across additional state and provincial jurisdictions.

McCarthy Capital has made a growth equity investment in Critical Response Group (CRG) to accelerate the company’s product innovation and scale its indoor emergency response mapping platform. The investment will support CRG’s efforts to meet rising demand across education, government and healthcare markets and expand integrations with first-responder technologies.

Bernhard Capital Partners’ dedicated Department of Energy (DOE) services platform has acquired Strategic Management Solutions, LLC (SMSI), a provider of program management, engineering and technical consulting services to DOE, NNSA, national laboratories and industrial nuclear clients. SMSI — founded in 1999 and headquartered in Albuquerque, New Mexico with over 400 employees — will continue to be led by its current management while joining Bernhard’s DOE/NNSA services platform to expand mission-critical capabilities and vertical integration across government nuclear and environmental programs.

Edgesource Corporation, a national security-focused small business headquartered in Alexandria, Virginia, has acquired Newbrook Solutions, Inc., a Chantilly, Virginia-based provider of mission system software development and management consulting services for the Intelligence Community and Department of Defense. Newbrook will operate as a wholly owned subsidiary, expanding Edgesource's capabilities in software engineering, systems engineering/SETA, service management, and other mission-focused offerings.

LMI, a technology-enabled management consulting firm serving the U.S. government, has acquired JJR Solutions, a Dayton, Ohio-based developer of low-code, cloud-based applications and human-centered design solutions for federal customers. The acquisition expands LMI’s technology modernization and human-centered design capabilities to better support defense, veterans’ health, and other federal mission areas.

Spatial Data Logic (SDL), a municipal management software provider headquartered in Somerset, New Jersey, has acquired Municipal Information Systems, Inc. (MIS) of Mountainside, New Jersey. The deal strengthens SDL's New Jersey presence and gives MIS customers a path to SDL's platform to meet new state digital-permitting requirements under NJ State Bill 1145.

Systems Planning & Analysis (SPA), an Arlington Capital Partners portfolio company, has acquired ManTech’s DARPA, OSD SCO and select NRO technical advisory services programs. The transaction transfers over 180 subject matter experts into SPA’s JOID and S&ID divisions, expanding SPA’s capabilities across the Department of Defense and the Intelligence Community; financial terms were not disclosed.

CBRE Group, Inc. agreed to acquire J&J Worldwide Services from Arlington Capital Partners for $800 million in cash plus up to $250 million in contingent consideration. The acquisition expands CBRE's technical services and government contracting capabilities, adding J&J's ~3,300 employees and long-term DoD and federal facility contracts headquartered in Franklin, Tennessee.

Avenu Insights & Analytics, a portfolio company of Arlington Capital Partners, has acquired Finvi's State & Local Government Division (Finvi SLG), a provider of court case management, collections workflow and integrated electronic payments software. The acquisition, announced January 17, 2024, is an add-on to Avenu aimed at expanding its court system and payment capabilities for state and local government customers; financial terms were not disclosed.

Autoagent Data Solutions has acquired MuniciPAY to expand its municipal payment gateway and consolidate incoming revenue solutions for county and local governments. The deal broadens Autoagent's citizen payment capabilities across utilities, parking, DMV fees and other municipal payments; Stella Point Capital, Autoagent’s majority equity investor since 2021, commented on the strategic fit.

Godspeed Capital’s intelligence platform Crimson Phoenix has acquired Cyberspace Solutions LLC (CSS), adding prime contracts and long-standing customer relationships with U.S. Special Operations Command and the Defense Intelligence Agency. The deal integrates CSS’ cleared workforce into Crimson Phoenix and names industry finance executive Scott Crane as platform CFO to support continued growth of the PE-backed intelligence solutions platform.