Arlington Capital finds buyer for geospatial data tech firm

Arlington Capital Partners finds a buyer for one of its portfolio companies whose main federal clients for geospatial data products include the U.S. Geological Survey and NOAA.

Private equity firm Arlington Capital Partners has found a buyer for one of its portfolio companies in Quantum Spatial, a provider of geospatial data products and services to government and commercial customers.

In a release Tuesday, Arlington Capital said that NV5 Global has agreed to acquire Quantum Spatial for $303 million. The timeframe to complete the transaction was not disclosed.

Arlington Capital formed Quantum in 2013 through a pair of other acquisitions that were then rolled together to form the company.

Saint Petersburg, Florida-based Quantum specializes in mapping technology and other offerings that support acquisition, processing, analytics and visualization functions related to geospatial intelligence data.

The federal market has seen acquisitions over the past 12 months centered around the buyer seeking more of a geospatial footprint. Such transactions include Parsons Corp.’s buy of OGSystems and ManTech International’s purchase of H2M Group.

Quantum received approximately $49.4 million in unclassified prime contracting obligations from federal agencies in the government’s 2018 fiscal year with 51 percent of that from the U.S. Geological Survey and 23 percent from the National Oceanic and Atmospheric Administration, according to figures.

In an investor presentation, NV5 said that Quantum expects to post $128 million in revenue this year and $30 million in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization expenses). Outside of federal, Quantum’s other public sector clients include state and local government agencies and utilities.

The company is led as CEO by Peter LaMontagne, former chief executive of data analytics outfit Novetta. LaMontagne became Quantum’s CEO earlier this year and is on the board of directors at ManTech, which he helped lead through its 2002 initial public offering as a corporate executive team member.

Houlihan Lokey was the exclusive financial adviser to QSI.  Sheppard Mullin served as legal advisor to QSI.