M&A

MacB acquires intell, special ops firm

CTI brings MacB specialized products, engineering solutions

MacAulay-Brown has acquired Commonwealth Technology in a move that will further MacB’s business objectives by providing additional reach into the intelligence and special operation forces markets, which are two critical growth areas for the company.

Commonwealth Technology, or CTI, will operate as a whole-owned subsidiary of MacB, reporting to Mark Chadason, senior vice president and general manager of MacB’s national security group.

CTI was founded in 1967 and provides specialized products and solutions to the defense and intelligence communities. The company will bolster MacB with its mechanical engineering and prototyping capabilities, as well as its quick-reaction-capability environment that decreases product and solution design and development times, MacB said in a release.

“The acquisition of CTI increases MacB’s offering by adding to our extensive systems and electrical engineering capabilities, and is in line with our strategy to provide our national security customers with a full range of technology products, services and solutions,” said MacB president and CEO Sid Fuchs.

“CTI not only complements our current offerings, but adds additional engineering and logistical capabilities that will significantly advance our ability to support our national security customers,” Chadason said.

The deal was mutually beneficial, said Marc Marlin, director at KippsDeSanto & Co., the investment bank that advised CTI on the deal.

“CTI operates in a very sought-after intelligence and special ops customer environment and for MacAulay-Brown, it further bolsters a footprint that they had there,” Marlin said. “For CTI, there’s an interesting nuance in the marketplace where scale is helpful and allows you and go and chase bigger opportunities being part of a much bigger organization."

The deal also illustrates current trends in the acquisition marketplace.

“Coming out of 2013 where deal volume was down, I think this really showcases that deals are still getting done for those companies who have highly differentiated solutions and have heavy orientation in what we call mission-critical 'hotlane' markets,” Marlin said.

Hotlane markets include cyber, health IT, and specifically with this deal, special ops.

About the Author

Mark Hoover is a senior staff writer with Washington Technology. You can contact him at mhoover@washingtontechnology.com, or connect with him on Twitter at @mhooverWT.

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