PSS looks ahead after STG deal breaks down
By
Nick Wakeman
Preferred Systems Solutions is looking for more growth opportunities as it regroups after STG Group's $119.8 million deal to buy the company fell apart.
Its deal to be acquired by STG Group may have fallen apart, but this is far from the end of the story for Preferred Systems Solutions.
PSS CEO Scott Goss told me that it is “back to business for PSS.”
The company, owned by the private equity group CM Equity Partners, was not on the market when STG approached them with an offer.
The deal with STG was valued at $119.8 million and fell apart after STG failed to secure financing to close the acquisition.
Just a couple months before STG announced its deal, PSS made its sixth acquisition in 30 months through Synaptic Solutions to further expand in the intelligence market.
“We have room to grow,” Goss said.
PSS' intelligence business in particular is doing well with some recent wins, Goss said. In April, the company won a $75 million contract with the FBI for acquisition support services.
“Our focus is to grow the company and continue to build value,” Goss said.
Right now, Goss and his team are regrouping after a long process with STG. The deal was first announced in February with a March 30 close date. When that didn’t happen, the deal was renegotiated and extended to June 30 before it finally fell apart. PSS kept a non-refundable deposit of $925,000.
Technically, PSS is not back on the market but Goss said he and his team will entertain offers.
“Like any other company we would evaluate strategic considerations if they were the right fit,” he said. “But we are back to business as of now.”