M&A

Tetra Tech buys another government IT outfit

Tetra Tech has made a second acquisition of a government technology services provider in less than one year amid the global engineering and construction company’s push to further itself in the federal IT landscape.

In a release Tuesday, Tetra Tech said it has acquired application development and modernization company Segue Technologies. Terms of the transaction were undisclosed, but Tetra Tech said the deal adds 200 employees to its government services group.

This transaction continues Tetra Tech’s strategy to combine more IT and management consulting services around what the company already works on in water, environment and infrastructure. Many competitors of Tetra Tech in the so-called “AEC” vertical -- architecture, engineering and construction – have also looked to the government IT market for growth in recent years and made acquisitions to do so.

Prior deals by Tetra Tech to make that happen include the purchase of eGlobalTech last year and acquisition of Indus Corp. in 2016.

“The addition of Segue enables us to apply exciting cutting-edge techniques that incorporate advanced data analytics, cloud services, and enterprise-wide software applications for our government and commercial customers,” Tetra Tech CEO Dan Batrack said in a release. “Segue also brings additional capabilities with system modernization tools that are critical for our Department of Defense customers.”

Arlington, Virginia-based Segue was founded in 1997 and provides customized software and data management services to the Defense Department and other federal agencies. Segue’s customers within DOD are the Air Force, Navy and Marine Corps. The company also touts the Federal Railroad Administration as a civilian client.

In combining with Tetra Tech, Segue CEO Brian Callahan said in a statement that his company is “gaining access to their global platform and numerous contract vehicles.

“Now as part of Tetra Tech, we are able to combine our expertise to deliver greater value to our clients, while increasing opportunities for our employees around the world,” Callahan added.

USASpending.gov data indicates Segue received approximately $46.2 million in direct obligations from federal agencies during the government’s most recent fiscal year with 81.7 percent of that from the Air Force.

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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