Salient, CRGT create merger of equals
I’ve often wondered why we rarely see mergers of equals in this market, but it looks like we’re about to have one as Salient Federal and CRGT have announced that the two companies will join forces to create a new mid-tier company in the federal space.
Right now it’ll be called Salient CRGT. The value of the transaction has not been disclosed, but the new company will have $375 million in annual revenue and 1,700 employees.
Interestingly, the two private equity firms that own the two companies will continue to own the combined entity. Bridge Growth Partners acquired CRGT in January for $225 million, and Frontenac has backed Salient since its founding in 2009.
The leadership team of the new company also will be shared among the leaders of the two companies.
Brad Antle, president and CEO of Salient, will be CEO of Salient CRGT.
Tom Ferrando, president and CEO of CRGT, will be president of Salient CRGT
Kevin Parker of Bridge Growth Partners will serve as chairman of the board.
“As one team, Salient CRGT will have the deep resources and expertise to deliver a broader portfolio of innovative solutions and specialized services across the entire federal IT marketplace,” Antle said in a statement.
The combined companies will have an impressive stable of contracts including GSA Alliant, DISA’s Encore, NIH CIO-SP3, DHS Eagle II, and Treasury TIPSS-4.
The company’s capabilities will include Agile software development, data analytics, mobility, and cybersecurity.
“Salient CRGT is very well-aligned with Government IT spending priorities and the continuing focus on IT modernization across the broad spectrum of federal agencies,” Ferrando said.
The merger is expected to close early in the fourth quarter. Evercore and Credit Suisse served as Bridge Growth’s financial advisors. Wells Fargo and Houlihan Lokey advised Frontenac and Salient. Willkie Farr & Gallagher LLP and Garvey Schubert Barer served as legal advisor for Bridge Growth Partners and CRGT. Kirkland & Ellis LLP and Morrison & Foerster LLP served as legal advisors for Frontenac and Salient.
Posted by Nick Wakeman on Aug 11, 2015 at 9:32 AM