Private equity, IT management, Mergers and Acquisitions, Content, Vertical markets

Private Equity Firm WCAS Acquires GovCIO Technology Consultancy

Private equity firm Welsh, Carson, Anderson & Stowe (WCAS) has acquired GovernmentCIO (GovCIO), which provides high-end technology and digital solutions to federal agencies.

GovCIO's clients include the Department of Veterans Affairs and the Department of Health and Human Services. The company says the investment will support its continued organic growth through a focused acquisition strategy.

This is M&A deal 426 that ChannelE2E has covered so far in 2020. See the full M&A deal list here.

WCAS Acquires GovCIO: Deal Background

Brian Moran, Founder, GovCIO
Brian Moran, founder, GovCIO

GovCIO was founded in 2010 by US Navy veteran Brian Moran. Moran will remain with the company as a senior executive and retain a significant minority interest, the company said.

The company also announced the appointment of Jim Brabston as CEO. Brabston formerly served as an executive with Stanley, Inc. and Camber Corporation. Joe Cormier, a former senior executive with Camber Corporation, Sotera Defense and ManTech will become EVP and chief financial officer, the company said. The rest of GovCIO’s current management team will continue in their leadership roles, according to the firm.

Brian Moran, founder of GovCIO, commented:

"Our partnership with WCAS allows us to invest in our technical capabilities and customer relationships to further differentiate our value proposition in the market and take GovCIO to the next level of growth and scale. We look forward to working closely together with WCAS, Jim and Joe to build upon our success to date."

WCAS Investment History

WCAS is a technology and healthcare-focused private equity firm. The PE firm was founded in 1979 and has built its business acquiring founder-led businesses and through corporate carve-outs.WCAS has raised and managed more than $27 billion in funds in its 41-year history.

For this deal, DC Capital Advisors served as financial advisor to WCAS and Kirkland & Ellis served as legal advisor. Houlihan Lokey served as financial advisor to GovCIO and Covington served as legal advisor.