Mergers and Acquisitions, Channel technologies, Governance, Risk and Compliance, Mergers and Acquisitions, MSP, Private equity

Government Services Acquisition: PE-Backed BlueHalo Buys Intelligent Automation Inc

Private equity-backed engineering solutions and technology provider BlueHalo has acquired Intelligent Automation Inc (IAI) for an undisclosed amount.

This is technology M&A deal number 530 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.

BlueHalo was formerly known as AEgis Technologies. The company works in the national security industry, specializing in space superiority, directed energy, missile defense and cyberintelligence, according to its website. BlueHalo is a portfolio company of Arlington Capital Partners.

Based in Rockville, Maryland, IAI provides advanced technology in artificial intelligence, machine learning, data analytics, cybersecurity, hypersonics and radio frequency communications.

BlueHalo recently announced the expansion of its Albuquerque operations into a new state-of-the-art 200,000 square-foot facility. The acquisition of IAI fits into the company’s overall growth strategy while IAI’s “substantial” property portfolio will add significant depth to BlueHalo’s existing portfolio of products and services, BlueHalo said.

BlueHalo Acquires IAI: Executive Insight

Jonathan Moneymaker, CEO, BlueHalo
Jonathan Moneymaker, CEO, BlueHalo
Vikram Manikonda, CEO, IAI

Jonathan Moneymaker, chief executive officer of BlueHalo, commented:

"IAI has spent the last three decades building a premier platform focused on bringing innovation to market. With nearly one-third of their workforce having PhDs, IAI has an incredibly deep bench of world-class scientists, developers, and engineers, and we at BlueHalo could not be more excited to partner with the IAI management team as we continue to expand our capabilities across areas critical to national security. Encapsulating BlueHalo's mission areas with IAI's world-class multi-domain artificial intelligence/machine learning -based technologies will accelerate and enhance BlueHalo's trajectory while creating a repeatable, sustainable engine of innovation."

Vikram Manikonda, chief executive officer of IAI, said:

"From the outset, the alignment of cultures has been clear between our two businesses. Collectively we are a culture of inspired engineering seeking to solve some of the nation's most challenging problems. Joining forces with BlueHalo provides IAI the opportunity to not only continue its tradition of innovation, but work on a much broader set of problems and challenges. The entire IAI team and I are incredibly excited about this partnership and for the opportunities for innovation, accelerated growth, and product development that lie ahead of us."

David Wodlinger, a partner at Arlington Capital Partners, said:

"We are proud to partner with the IAI management team to continue building upon the strong foundation that they have established based on deep customer intimacy, highly technical research and development capabilities, and an extensive portfolio of proprietary products. We believe that IAI is a great fit for BlueHalo as one of our core capabilities as a company is utilizing our resources, whether they be laboratories, facilities, technical reach-back, systems and processes, or intellectual property to enhance and mature promising next-generation solutions into capabilities and products to address some of the most technically demanding challenges facing the national security community."

Raymond James and Associates, Inc. acted as the investment banking advisor to IAI in this deal. Sheppard, Mullin, Richter, and Hampton served as legal advisor to BlueHalo, and Miles and Stockbridge served as legal advisor to IAI.

Government Services M&A

Merger and acquisition (M&A) activity involving government IT service providers has been steady, with numerous first-time buyers, private equity firms and strategic buyers jumping into the market. You can find a full list of the deals ChannelE2E has tracked so far here.