M&A

Alion Science inks deal for Macaulay-Brown

Alion Science and Technology has agreed to acquire engineering and technology services contractor MacAulay Brown to further expand a footprint across national security agencies.

Terms of the transaction announced Thursday were undisclosed. This is Alion’s first acquisition since the company was purchased by private equity firm Veritas Capital three years ago.

MacB employs close to 1,500 people that specialize in services for areas such as cybersecurity, cloud computing, research-and-development, laboratory and IT services. The 39-year-old company’s customers include agencies in the defense, intelligence, special operations, homeland security communities.

“Through this acquisition we strengthen our inroads into emerging technologies in electronic warfare, artificial intelligence, cybersecurity and cloud solutions,” Alion CEO Steve Schorer said in a release.

Bob Kipps, co-managing director at investment bank KippsDeSanto & Co., said the transaction shows “Alion is back in the aggressive growth track in a major way” after several years off from acquisitions. KippsDeSanto was the financial adviser to MacB.

The deal also is another indication that private equity is finding plenty to like in the government market and opportunities to build scale amid defense spending increases and a renewed push to modernize agencies’ IT environments.

Favorable capital markets are also providing a strong foundation for aggressive dealmaking, Kipps added.

Within the past year, Veritas has closed on two deals for Peraton, the former Harris Corp. IT business; and Guidehouse, the former PwC U.S. public sector practice.

McLean, Virginia-based Alion posted $848 million in revenue for the 12-month period ended March 31, 2017 and has “an employee count in the 2,300 range,” according to credit ratings agency Moody’s Investors Service.

Blank Rome LLP served as legal adviser to MacB. Macquarie Capital acted as financial adviser and Schulte Roth & Zabel LLP was legal adviser to Alion.

About the Author

Ross Wilkers is a senior staff writer for Washington Technology. He can be reached at rwilkers@washingtontechnology.com. Follow him on Twitter: @rosswilkers. Also find and connect with him on LinkedIn.

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