New Mountain adds Camber to its portfolio

The private equity group of New Mountain Capital is taking another plunge into the government market with a majority investment in Camber Corp.

Terms of the deal announced last week were not disclosed. Camber, an employee-owned company, had about $197 million in 2007 revenue. The company is ranked No. 83 on Washington Technology’s 2008 Top 100 list of the largest federal government prime contractors.

This investment is New Mountain’s third in the government space. Previously, it has invested in Deltek Inc. and Apptis Inc.

Camber, based in Huntsville, Ala., provides professional and management services, information technology, engineering and advanced training to federal agencies. Most of its customers are with the Defense Department, the company said.

In addition to New Mountain’s investment, Camber’s management team also is making a substantial personal equity investment in the business, the company said.

New Mountain’s “proven skill as a business builder, will help our company grow even faster and enhance our service offerings,” said Walter Batson, founder, chairman, and chief executive officer of Camber.

New Mountain was attracted to Camber because of that company’s sales and earnings growth since its founding 1990 and particularly over the last five years, said Alok Singh, managing director of New Mountain.

Raymond James served as financial advisor to Camber in this transaction. Wachovia Securities served as financial advisor to New Mountain.

In addition to Batson, other senior managers will remain with Camber. Batson and outside director John Wynn, partner at Lanier Ford Shavier and Payne P.C., will continue as members of the board of directors. Singh, Michael Ajouz and Bert Notini will join the board from New Mountain. Kevin Parker, the CEO and president of Deltek, will join as an outside director.