Cask Breakup Sharpens ServiceNow, Government Cybersecurity Focus
Cask Technologies has split into two businesses: One focused on ServiceNow consulting, the other focused on government and cybersecurity services. The move could set the stage for one or both companies to eventually get acquired, sources tell ChannelE2E.
Here’s a look at each business — now known as Cask Government Services and Cask NX.
Cask Government Services
Cask Government Services, headquartered in Northern Virginia, has roughly 120 employees. The business will focus on program management, cybersecurity, logistics, business analysis and engineering services for the federal government, the company say. Cask currently holds prime contracts in GSA Stars II, GSA IT 70, Seaport-E/NG and subcontracts on several IDIQs and supports many NAICS codes.
It sounds like Cask President Liz Guezzale will lead this business, but ChannelE2E is double-checking that assumption.
In a prepared statement, Guezzale said:
“It was the right time to separate our ServiceNow business so our government teams can keep their focus on the program support and operational management expertise that made Cask what it is today. Now we can sharpen our focus on government services, so our artisan-engineers can continue to bring our deep domain experience and technology acquisition expertise to help our government clients be successful in their missions.”
Cask NX: ServiceNow Partner Focus
Cask NX, headquartered in San Diego, California, has roughly 100 employees. The company will continue its work designing, developing and implementing digital transformation using ServiceNow for enterprise clients across both the private and public sectors, the company says.
Cask consultants provide domain-focused solutions across IT, Human Resources, Security and Risk Management, Customer Service, Finance, and Operations to modernize employee, customer, and constituent user experience. Cask’s approach integrates design thinking and organizational change management to help its customers transform the way they work.
Mark Larsen has been named president of Cask NX. In a prepared statement, he said:
“We have been working with ServiceNow for over 10 years to help businesses transform the way people work and are now all in with our staff and resources, focusing our attention on delivering a one-of-a-kind ServiceNow experience. The split will enable significant business and human capital investments in a fast-growing ServiceNow ecosystem to capture maximum opportunity over the next ten years, with a core focus to drive impactful outcomes for clients through organizational and technology transformation.”
Mergers, Acquisitions: Government Consultants, ServiceNow Partner Deals
Each Cask business could be positioning itself for a longer-term M&A deal, sources suggest to ChannelE2E.
Mergers and acquisitions in each sector — government IT services plus ServiceNow partners — has been strong. Example deals in each area include…
Government Contractor Acquisitions:
- April 2019: Systems integrator By Light Professional IT Services, backed by private equity, acquired Phacil, a government MSP & cybersecurity consulting firm.
- January 2019: Government contractor CACI International acquired LGS Innovations and Mastodon Design for a combined $975 million.
- January 2019: Huntington Ingalls Industries (HII), America’s largest military shipbuilder, acquired Fulcrum IT Services & G2 Inc. for government technology consulting & cybersecurity expertise.
- January 2019: Government IT services provider Concept Plus, a key Oracle partner, acquired Dougherty & Associates (DAI Solutions), a management consulting firm headquartered in Alexandria, Virginia.
- November 2018: Private equity-backed EverWatch acquired Dynamic Engineering Solutions (DES), an IT consulting firm that provides software and systems engineering, cloud and systems administration to government agencies. Financial terms were not disclosed.
- September 2018: Science Applications International Corp. (SAIC) acquired rival Engility for $2.5 billion in stock. The deal created a $6.5 billion IT consulting and professional services firm focused on government agencies.
- May 2018: SAP National Security Services (SAP NS2) acquired government IT systems integrator Technology Management Associates (TMA).
- February 2018: General Dynamics acquired government IT contractor CSRA for $9.6 billion, making it the number two provider of federal IT services.
ServiceNow Partner Acquisitions:
- April 2019: GrowthOps acquired ServiceNow partner Entrago for IT service management (ITSM) expansion across Australia and Asia-Pacific region.
- February 2019: Enterprise Vision Technologies acquired Zefflin Systems.
- January 2019: CDW acquired Scalar Decisions Inc.
- December 2018: Coreio acquired Tony Grice & Associates (TGA), a Canadian ServiceNow partner.
- November 2018: DXC Technology bought TESM and BusinessNow, two ServiceNow providers.
- October 2018: Champion Solutions bought SystemiC, a consulting and development company.
- April 2017: Computacenter bought out Team Ultra.