Salient sells ‘body-shop’ business

Deal offers opportunity for growth for staffing services firm

Salient Federal Solutions Inc. has sold a $10 million-a-year piece of business with Fannie Mae to an Orlando, Fla., company that specializes in staffing services.

Terms of the deal between Salient and Kavaliro were not disclosed. About 58 people will move from Salient to Kavaliro.

Brad Antle, Salient CEO, said the work being done at Fannie Mae was a vendor service model, where Salient was providing temporary employees in a “body-shop arrangement.” Often, these workers were in a temp-to-permanent arrangement, and would be hired full-time by Fannie Mae.

“This is not the business that Salient is in,” he said. “We provide solutions and service to our customers.”

For Kavaliro, however, the acquisition is “exactly the opportunity [the company] was ready to take on,” said Mark Moore, Kavaliro president.

The deal expands the company’s capabilities and opportunities with new and existing clients, he said in a statement.

As part of the agreement, Kavaliro acquires all contractual resources affiliated with the program, and all of Salient's internal staff related to Fannie Mae. The company is picking up more capabilities in areas such as Microsoft .Net and Java technologies, which aligns with Kavaliro's offerings, the company said.

Kavaliro sees demand for staffing services in the Washington, D.C., region, in areas such as technical and financial resources.

For those Salient employees that are making the switch to Kavaliro, the move offers them more opportunities to bring in new customers, and grow the technology and financial staff augmentation business for the company, it said in its release.

“We are very excited about the opportunity to better serve our customer through Kavaliro that has a business founded on providing resources in this specific environment,” said Executive Vice President Suresh Raj, who is moving from Salient to Kavaliro.

About the Author

Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.

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