Deltek sells WMG, Aronson buys
At one time, Aronson LLC and the Washington Management Group were competitors, each selling consulting and advisory services to companies looking to win spots on GSA schedules and other contracts across the government.
Today, they are partners as Aronson has acquired WMG from Deltek for an undisclosed amount.
Deltek had picked up WMG when it acquired the market research firm FedSources in 2011.
The kind of work that WMG does is just too far a field from the software and information services that Deltek is focused on, said Kevin Plexico, Deltek’s vice president of information services.
But what’s far afield for Deltek is right in Aronson’s wheelhouse.
“We always saw WMG as our closest competitor,” said Hope Lane, the Aronson partner who leads its GSA practice. But there is minimal overlap in the client base.
WMG was focused primarily on helping company’s get on the GSA and Veterans Affairs schedules. Aronson did that work but also takes a broader approach, helping companies with Defense Contract Agency issues, Lane said.
The schedule work both companies did is very complementary because both took a very consultative and strategic approach, she said.
“This is not about helping someone fill out paperwork,” she said.
Because of the long term nature of schedule contracts companies need to take a much more strategic and long term view. “What kind of growth do expect? How do you want to position yourself with customers and competitors?” Lane said.
If you don’t think about these kinds of questions at the beginning of the contract and design them into the contract, you can have problems down the road.
Lane gave the example of labor descriptions. “Most companies write more for the people they have now, but you need to think about the next 10 people you hire,” she said.
Financial terms of the deal between Deltek and WMG was not disclosed, nor would Plexico or Lane disclose the number of people moving over to Aronson.
“We are getting some really good experts,” Lane said. “And it expands our client base.”
For the WMG employees, they will have access to more resources and a broader set of capabilities from the rest of Aronson, she said.
WMG had an office in downtown Washington D.C., but that closed about a year and half ago. Since then, most of the employees were working from home. Many of those will now move into Aronson’s Rockville, Md., office, but those outside the region will continue to work remotely, she said.
“We serve clients all over the country,” Lane said.
Posted by Nick Wakeman on Feb 23, 2015 at 9:30 AM