Leading M&A investment bank KippsDeSanto to be acquired

KippsDeSanto & Co., one of the government contracting sectors leading investment banks, has agreed to be acquired by one of the country’s largest financial institutions seeking more of a presence in GovCon and the merger-and-acquisition market.

The buyer is Capital One, where KippsDeSanto will both become a subsidiary of and continue to operate under its current brand name. Both firms expect to close the transaction in the third quarter of this year, according to a Monday release.

“All of KippsDeSanto’s 30 professionals are excited to support Capital One’s thrust into middle market M&A,” Bob Kipps, co-founder and managing director of KippsDeSanto," said in a release. “With Capital One, a top 10 U.S. commercial bank, we found an innovative, technology savvy financial institution with a similar culture and business values. Moreover, we see enormous synergy and growth potential with their capital markets products, expanded private equity and corporate relationships and industry knowledge in aerospace and defense and other key verticals.”

“Joining Capital One was a natural next step in the growth plan for us at KippsDeSanto,” said Kevin DeSanto, also a co-founder and managing director. “Beyond the M&A advice we currently offer,our clients will now have access to additional solutions offered by Capital One.”

Tysons Corner, Virginia-based KippsDeSanto has advised on nearly $17 billion worth of mergers and acquisitions in the aerospace, defense and government technology services segments since 2007.

Examples this year of government technology deals the firm has advised on include the sale of Solers to Peraton, eGlobalTech to Tetra Tech and the Kforce Government Solutions business to ManTech International. KippsDesanto also worked with DLH Holdings Corp. on its acquisition of Social & Scientific Systems.

Capital One seeks to complement its existing specialty finance function with KippsDeSanto’s market expertise, Capital One’s Steve Tulip told WT in an emailed statement.

“The (KippsDeSanto) team will also bring a breadth of capabilities that are relevant across industries and will provide a strong complement to our existing M&A offering and broader corporate banking and capital markets products,” said Tulip, head of capital markets for Capital One’s commercial banking.