M&A

Perspecta makes first acquisition, to pay $250M for Knight Point

Now in year two of its journey, Perspecta has made the company’s first acquisition as a publicly-traded entity.

Perspecta said Thursday it has paid $250 million to acquire Knight Point Systems, a provider of managed services and solutions focused on IT modernization and network protection based in Reston, Virginia.

Led by CEO Bob Eisiminger, Knight Point was founded in 2006 and focuses on cloud computing, cybersecurity, digital transformation and agile “DevSecOps” environments.

In a release, Perspecta CEO Mac Curtis touted “Knight Point's deep customer intimacy, rich legacy of innovation, patented IP and delivery of IT and cyber managed services programs to customers such as the Departments of Defense and Homeland Security.”

Investment bank Baird was Knight Point’s financial adviser on the transaction.

During a February earnings call, Curtis said Perspecta had “our heads above ground” and was “starting to look around” for potential acquisitions as the company made progress on paying down debt and shareholder returns.

"We're really focused on cloud, IT transformation (and) cybersecurity. The third piece is really focused on these tools that we've got and to help enhance the mission, trusted workforce and then looking at opportunities in space hazard protection, those kinds of things," he added.

One of Knight Point’s largest contracts is a potential 10-year, $902 million award secured last year through a recompete for continued communication infrastructure services to the Defense Information Systems Agency. Knight Point has performed that work since 2011.

The company also works with agencies in the environment and energy, intelligence, health care, labor, transportation, finance and education arenas.

Knight Point posted around $160 million in annual revenue at the time of this Forbes article’s publication of a profile about the company in December 2018.

Chantilly, Virginia-based Perspecta said the $250 million price represents a single-digit multiple on Knight Point’s expected earnings before interest, taxes, depreciation and amortization expenses on a forward-12 month basis.

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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