Sotera makes deal for data fusion firm

Sotera Defense Solutions plans to acquire Potomac Fusion Inc., a provider of cloud-based data fusion and data analytics services to defense and intelligence agencies.

Terms of the deal were not disclosed and it is expected to be completed before the end of the year. The company had about $40 million in 2011 revenue.

Potomac Fusion develops data fusion, data analytics, cyber and visualization solutions and its capabilities fit with Sotera’s strategy of targeting fast growing segments of the market, said John Hillen, the company’s president and CEO.

“Our strategy is to strengthen, deepen and align our core capabilities to address the rapidly evolving requirements of our national security customers,” he said in a statement.

Potomac Fusion was founded in 2002 with a focus on developing software frameworks for data fusion and big data analytics. Its cloud-based solutions are used by tactical mission systems in the intelligence, surveillance and recognizance areas.

"Potomac Fusion’s significant expertise in cloud computing architectures, data fusion and data analytics solutions will bolster the broad range of support we can provide to our customers operating on the front lines of cyber warfare, intelligence and tactical ISR," Hillen said.

Chertoff Capital, the investment banking arm of the Chertoff Group, served as an adviser to Potomac Fusion.