Sev1Tech makes deal to double footprint
Sev1Tech has made its first acquisition since getting an infusion of resources when it became a private equity platform earlier this year.
The deal for Engineering Solutions and Products doubles the size of Sev1Tech, according to a Wednesday announcement.
Sev1Tech declined to release terms of the deal or ESP’s annual revenue. But in an interview for our Project 38 Podcast, CEO Bob Lohfeld Jr. said Sev1Tech was a small mid-tier company with over $50 million in annual revenue. The goal is to hit over $250 million in three years.
This is Sev1Tech's first acquisition since the company itself was acquired by DFW Capital earlier this year. Sev1Tech also recently added Enlightenment Capital as a second investor.
Lohfeld said the acquisition of ESP adds to the company’s portfolio of services offerings and brings new federal and commercial customers.
Known as ESP, the company primarily focuses on C4ISR solutions that support the Army with systems engineering and integration, logistics ad supply chain management, mission and program support, training and readiness, as well as information technology and cybersecurity.
ESP also brings several large contracts such as the Army Responsive Strategic Sourcing for Services (RS3), General Services Administration OASIS and Navy SeaPort-e. OASIS and SeaPort-e will be new contracts for Sev1Tech.
“Enhancing Sev1Tech’s enterprise core IT capabilities with ESP’s long legacy of C4ISR and tactical field experience will allow us to offer a broader range of modernization services to our DHS and DOD customers,” Lohfeld said.
Houlihan Lokey was the exclusive financial adviser to ESP.
Posted by Nick Wakeman on Sep 05, 2019 at 11:27 AM