Arlington Capital creates new middle tier player

In the wake of its acquisition of MCR, private equity firm Arlington Capital Partners has purchased another government services company and merged those two firms into one.

Arlington's acquisition of Systems Planning & Analysis announced Tuesday creates a new middle tier player with nearly $350 million in annual revenue, 1,200 employees and 125 proprietary software tools.

SPA CEO William Vantine will be the CEO of the combined entity once the deal closes in the coming weeks.

MCR was acquired by Arlington Capital in late August and that company's services include cost analysis, engineering, and software development. SPA adds systems engineering, modeling and simulation, advanced analytics and strategic advisory services. SPA's customer include the Navy, Defense Threat Reduction Agency, Space Force, Air Force and Australia's defense department.

“By leveraging the historical individual successes across each of our companies and pooling our organic investments in facilities, R&D and our employees, we are excited to move out to achieve our strategic vision after closing,” Vantine said the deal announcement.

MCR holds the OASIS and Seaport-e contracts. SPA also holds the OASIS contract along with Seaport NxG, Defense Technical Information Center IAC, Navy Business Management Support Services, and Defense Department Analytic & Technical Support Services.

SPA's sale to Arlington Capital marks an exit for CM Equity, which acquired the contractor in 2016. Other federal market companies still in the CM Equity portfolio include A-tek, Citizant and an undisclosed national security company.

Arlington Capital's portfolio in the federal market also includes Octo, BlueHalo and Tyto Athene.

Sheppard Mullin and Morrison Foerster served as legal advisers to Arlington Capital. Baird was the financial adviser to SPA with Squire Patton Boggs and Rees Broome as legal advisers.