Godspeed Capital acquires its first federal technology company

Godspeed Capital Management has identified its first acquisition in the federal technology and professional services market nearly seven months after the private equity firm announced its entry into the arena.

The investment group has purchased Varen Technologies, a defense- and intelligence-focused contractor focused on cybersecurity and software solutions for those customers. Terms of the transaction announced Thursday were not disclosed.

Columbia, Maryland-headquartered Varen was founded in 2005 and also focuses on analytics, augmented intelligence, agile development, cloud computing and enterprise systems. Varen employs nearly 160 software and systems engineers with nearly all of them holding high-level security clearances.

Marty Leshin and the existing management team at Varen will continue to run the company with Godspeed’s investments supporting functions related to technology, human capital, business development, corporate infrastructure and acquisitions of other businesses.

Godspeed Capital first unveiled itself to the market in April as an acquirer focused on lower middle-market companies through transaction types such as potential control buyouts, buy-and-builds, corporate carve-outs and special situations.

The firm also has a partner for its endeavor in East Rock Capital, another private investment firm that has approximately $2.5 billion in assets it manages.

G Squared Capital Partners served as financial adviser to Varen with Miles & Stockbridge the selling company’s legal adviser.