Platinum Equity buys OAO Technology

Platinum Equity LLC has acquired OAO Technology Solutions Inc. from an affiliate of J.F. Lehman and Co. and the other OAOT stockholders. Financial terms of the transaction were not disclosed.

OAOT provides managed information technology services and solutions for Fortune 500 corporations, global outsourcers and government agencies, according to a Platinum announcement today.

A team of Platinum in-house operations specialists is now working with OAOT management to develop a long-term plan and transition the business into Platinum's portfolio.

“Throughout the world the need for high-quality, cost-effective managed IT services is growing and OAOT offers a full-range of solutions to meet that increasing demand,” Jacob Kotzubei, Platinum partner who is leading the OAOT investment, said in the statement.

Acquiring OAOT is a natural investment for Platinum, given the firm’s history of investing in IT companies, he said, and added, “We know and understand the industry well and have had a lot of success creating value in this space.”

During the past three years OAOT has expanded its market share, enhanced its commercial IT services offerings, and significantly improved its operational effectiveness, profitability and financial performance, Sidney Fuchs, OAOT president and chief executive officer, said in the statement.

“This acquisition provides incredible momentum and creates a platform for rapid growth as we join the top-tier group of IT services companies in the Platinum Equity portfolio,” he said.

OAOT, of Greenbelt, Md., has 1,600 employees throughout the United States, Canada and Europe.

With a reported $11.4 billion in revenue in 2008, Platinum Equity was ranked the largest private company in Los Angeles for the fifth consecutive year in 2009.

Kirkland & Ellis LLP served as Platinum Equity’s legal adviser on the OAOT acquisition. Gibson, Dunn & Crutcher LLP served as legal adviser and KippsDeSanto & Co. and The Chesapeake Group served as financial advisers to OAOT.