Private equity firm backs federal health IT outfit
- By Ross Wilkers
- Oct 16, 2020
A New York City-based private equity firm has entered the federal health IT market through an investment in GovernmentCIO, a provider of digital and other technology-related services to agencies.
Welsh, Carson, Anderson & Stowe intends to use GovCIO as a platform from which to make further deals as the 10-year-old company also pursues organic growth with existing and new customers.
Terms of the deal announced Friday were undisclosed, while GovCIO founder Brian Moran will stay with the company and hold a minority interest. GovCIO’s main customers include the departments of Veterans Affairs and Health and Human Services.
WCAS additionally has brought a new chief executive to GovCIO in Jim Brabston, who was an executive at the businesses formerly known as Stanley Inc. and Camber Corp.
Also joining as chief financial officer is Joe Cormier, who also was an executive at Camber. His career also includes roles at ManTech and the former Sotera Defense. Other members of GovCIO’s current management team will stay with the company.
DC Capital Advisers acted as financial adviser to WCAS and Kirkland & Ellis was legal adviser. Houlihan Lokey served as financial adviser to GovCIO with Covington as legal adviser.
Ross Wilkers is a senior staff writer for Washington Technology. He can be reached at email@example.com. Follow him on Twitter: @rosswilkers. Also find and connect with him on LinkedIn.