ECS Federal busts through $500M barrier with InfoReliance deal

ECS Federal CEO George Wilson set an 'aggressive' goal in 2015 to hit $500 million mark in a few years. Now he's done it with a deal to acquire InfoReliance and he's transformed the business along the way.

Almost exactly two years ago, ECS Federal CEO George Wilson told me the company would reach $500 million in revenue in a “few years”. He called it aggressive, “but that’s the milestone we’ve set,” he said.

With this week’s acquisition of InfoReliance, ECS has surpassed that goal with the expectation that the company will reach $525 million in 2017 revenue thanks to about $150 million in added sales.

Terms of the deal were not disclosed, but this is the biggest acquisition ECS has undertaken.

But the transaction also marks more than just added revenue. It also is a major milestone in ECS’ transformation toward a more solution provider type of company as opposed to being just another provider of acquisition and program management support.

The transition was underway before the InfoReliance acquisition thanks to earlier buys it closed in 2015, but the latest deal greatly accelerates the process. Revenue from acquisition and program management work represented about 17 percent of revenue in 2016. With the InfoReliance purchase, it will be down to 9 percent for 2017, Wilson said.

“We have really shifted from acquisition PM support to cyber, cloud, agile software and systems delivery,” he said. “We are much more on the performer side.”

Bob Kipps, co-managing director of investment bank KippsDeSanto, said the acquisition was a “transformative shift for ECS into NextGen IT – cyber and cloud in particular.” KippsDeSanto represented InfoReliance in the deal.

ECS now lists its core capabilities as cybersecurity, cloud computing, software engineering solutions and managed services. It is focused on the national defense and intelligence markets with customers such as the Navy, Army, Homeland Security, Justice, Defense Health Agency and intelligence agencies.

As part of ECS, InfoReliance will operate as a subsidiary. It brings along customers with the Navy, Marine Corps, U.S. Postal Service, FBI, intelligence community and Labor Department. The management team led by CEO Andrew Butler remains in place with Butler becoming senior vice president and strategic adviser to Wilson.

The acquisition of InfoReliance is the first deal for ECS Federal since 2015, when it closed the purchases of Systems Planning Corp. and Information Systems Worldwide Corp. Those acquisitions followed a minority investment from the private equity firm Lindsey Goldberg. The deal with LG is what sparked my conversation with Wilson when he announced his $500 million goal.

Wilson isn’t setting a new revenue goal this time. “Now that we have some scale we can be more aggressive in our technology and personnel investments,” he said.

The focus will be on organic growth and building on capabilities in cyber, cloud deployments, agile software and systems integration.

Future acquisitions will be more of the "tuck-in" type, for example, around data analytics, artificial intelligence and biometrics, Wilson said.

ECS will seek to leverage its stable of multiple award contracts. It holds positions on Alliant, OASIS, CIOSP-3, CIO-CS, SEWP and ValuePoint, a cloud contract put out by the National Association of State Procurement Officers. On Alliant, ECS is one of the few primes with positions on all three service pools.

The InfoReliance acquisition “along with new contract awards has greatly accelerated ECS’ transformation,” Wilson said.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.