Veritas grows portfolio with CherryRoad deal

Veritas Capital continues to demonstrate its faith in the government market with its purchase this week of CherryRoad GT Inc., an information technology services company.

CherryRoad joins other government services companies in Veritas' portfolio, including DynCorp International, McNeil Technologies, Trawick & Associates and Vangent Inc.

Terms of the CherryRoad acquisition were not disclosed. The company will continue to operate under its management team led by President Tom Ferrando.

"With a highly regarded partner like Veritas Capital, a dedicated senior management team, and a talented workforce, we have an enormous opportunity to unlock the growth potential of the company," he said in a statement.

CherryRoad of Vienna, Va., provides enterprise portal, disaster recovery, managed IT services and secure remote communications services. Customers include the Defense Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Army.

The company was the prime contractor for the Army Knowledge Online program, the model for Defense Knowledge Online, which CherryRoad also built and maintains.

The purchase of CherryRoad "reinforces our investment focus within the government marketplace," said Veritas Capital founder and President Robert McKeon.

D. E. Shaw provided debt and equity financing, and SunTrust Bank provided debt financing for the transaction. Stifel, Nicolaus & Company Inc. acted as financial advisor to CherryRoad.