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DLH Holdings Acquires Grove Resource Solutions Inc (GRSi)

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DLH Holdings, which provides research and development, systems engineering and integration, and digital transformation services to federal agencies, has acquired Grove Resource Solutions Inc (GRSi) for $185.0 million.

This is technology M&A deal number 1,036 that ChannelE2E has covered so far in 2022. See more than 2,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.

DLH Acquires GRSi

DLH Holdings, founded in 1969, is based in Atlanta, Georgia. The company has five employees listed on LinkedIn. DLH Holdings’ areas of expertise include professional healthcare and social services.

Grove Resource Solutions, founded nearly 20 years ago, is based in Bethesda, Maryland. The company has around 700 employees. GRSi’s areas of expertise include technology, business solutions and research and engineering.

GRSi works with various civilian and military federal agencies including the National Institutes of Health (NIH), U.S. Navy (USN) and U.S. Marine Corps (USMC), among others.

DLH estimates that GRSi will contribute around $140 million to the company going forward, and the firm’s backlog was approximately $550 million at closing. GRSi will be a wholly owned subsidiary of DLH Holdings Corp., and current GRSi key operations leaders are expected to remain with DLH in leadership roles, the company said.

DLH Acquires GRSi: Executive Insight

Zach Parker, president and CEO, DLH
Zach Parker, president and CEO, DLH

Zach Parker, president and CEO, DLH, commented:

“We are thrilled to begin a new era at DLH with the acquisition of GRSi. Through this landmark transaction, we elevate our information technology and engineering capabilities, while adding the scale we need to thrive in an increasingly competitive marketplace. GRSi’s high-end IT and technical capabilities serving scientists, researchers, and system engineers have earned the company a reputation for excellence, and we expect that our unified organization will build upon those achievements to drive accelerated growth for DLH in the near- and long-terms. GRSi’s highly credentialed workforce features some the best and brightest technology leaders in our industry. We could not be more excited to welcome the entire team into the DLH family.”

David Affeldt, president & CEO, GRSi, said:

"From culture and values, to market presence and capabilities, we believe that DLH is an ideal partner for GRSi. Working with Zach and his team has reinforced our belief that this transaction will yield an impressive platform for achieving our joint objectives for years to come. DLH has the capabilities, customers, and culture that will enhance those of our own – resulting in a dynamic, improved provider of essential services to federal customers.”

Government IT Services M&A

Indeed, numerous first-time buyers, private equity firms and strategic investors have jumped into the market. Here’s a look at all government IT consulting M&A deals that ChannelE2E has tracked:

December 2022: IBM acquired Octo.

November 2022Cadmus acquired Wheelhouse Group, a provider of IT modernization, customer experience (CX) and DevSecOps services to the government.

November 2022: Enlightenment Capital acquired Agile Defense, a digital transformation solutions provider to the Department of Defense and other federal customers.

November 2022: Edgesource acquired Auspex, which provides ​​advanced data analytics, cybersecurity and management consulting services to the intelligence community.

October 2022: Edgesource acquired Auspex.

October 2022: DMI acquired Ambit Group