Private Equity: DFW Capital Partners Acquires Sev1Tech
New Jersey-based private equity firm DFW Capital Partners has acquired a controlling stake in Sev1Tech, a provider of IT and cybersecurity services for U.S. government agencies headquartered near Washington, D.C. in Woodbridge, Virginia.
The current management team will stay in place and continue to run the company, according to DFW. Indeed, Sev1Tech’s management team sought out DFW to help it grow both organically and through acquisitions, according to the company’s CEO Bob Lohfeld.
Sev1Tech mainly serves the government and enterprise-grade commercial sectors. The new partnership will allow it to continue delivering those services and position the company to take on larger projects in the full and open market, Sev1Tech said.
DFW Capital Partners Acquires Sev1Tech: Executive Perspectives
Lohfeld said of the deal:
“DFW is our ideal investment partner, as they understand the sector and share our vision to create a platform for service delivery excellence as we transition to the mid-tier. This partnership strengthens Sev1Tech’s capacity to pursue strategic growth initiatives and invest in new capabilities required by our customers.”
Doug Gilbert, partner at DFW Capital Partners, added:
“We are excited to partner with Bob and the entire Sev1Tech team as the company moves forward in its next stage of growth. We are extremely impressed with their relentless commitment to serving customers and their strong competitive position in the government contracting market. We are investing in a team that has the ambition, drive, and a commitment to build an industry-leading business in a very large and competitive global market.”
Government Technology Services: Mergers and Acquisitions
M&A activity involving government-focused IT consulting firms and service providers has been steady. Recent deals we’ve tracked include:
- January 2019: 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.
- February 2018: On Assignment purchased ECS Federal LLC, one of the largest privately-held U.S. government services contractors, for $775 million.