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By Nick Wakeman

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Nick Wakeman

STG makes $119M deal to expand intel business

STG Group is acquiring Preferred Systems Solutions in a $119 million deal that marks the first acquisition for STG since it was itself acquired 18 months ago.

STG went public in September 2015 when it was acquired by a special purpose acquisition company or SPAC known as Global Defense & National Security Systems Inc. SPAC’s are publicly traded companies created to make an acquisition. The STG deal fulfilled its promise to its investors when it was created.

With the PSS deal, STG is making good on a strategic initiative to become a platform for more deals. The acquisition is being funded through debt and equity financing. It should close during the first quarter of 2017.

From PSS, STG will be picking up capabilities around advanced computing, analytics, program and acquisition management, and cyber and software solutions, the company said in a release.

STG also is expanding its reach into the intelligence community.

“We are excited to announce the next step in our transformation strategy for STG Group. With the acquisition of PSS, we are advancing our technological agility and ingenuity to meet the most complex and demanding national security challenges facing the U.S.,” said STG President Phillip Lacombe.

The sale of PSS marks an exit for CM Equity Partners, which acquired the company in 2007. Since that time, PSS made two acquisitions. The most recent one was in 2014 when it bought Envision Technical Services.

Morrison & Foerster was STG’s legal advisor. Sagent Advisors was the company’s financial advisor.

Posted by Nick Wakeman on Feb 21, 2017 at 2:16 PM

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