Space launch, national security IT and cyber drove deals this week
Gettyimages.com/Carol Yepes
By
Ross Wilkers
Four acquisitions came in quick succession this week and highlight what is being bought in the market and who the buyers are.
Four transaction announced this week illustrate how space, national security IT and cybersecurity are driving deals and drawing buyers into the market.
Firefly Aerospace
Noted government market investment firm AE Industrial Partners has acquired a majority stake in the startup launch vehicle maker looking to be a key player in the “new space economy.”
Terms of the investment announced Thursday were undisclosed, but Firefly said it will use the backing of AEI to secure additional contracts with federal agencies including the Defense Department and others in the national security arena.
Greater Austin, Texas-headquartered Firefly is the latest company to become part of AEI’s space investment portfolio that includes the now-publicly traded Redwire and privately-held Sierra Space.
AEI’s entry into the Firefly investment also represents an exit for Noosphere Venture Partners, which re-created the company in 2017 after a bankruptcy and liquidation process.
Covington & Burling LLP served as legal adviser and Ernst & Young served as financial adviser to AEI. DLA Piper LLP and Kirkland & Ellis LLP served as legal advisers, and Jefferies served as the exclusive financial adviser to Noosphere Venture Partners.
Anser Advisory
Roughly three months after creating a federal unit, the program management and consulting firm has purchased technology and professional services firm IntegrateIT for more of a foothold in that market.
Anser Advisory did not disclose terms of the purchase, but said IntegrateIT’s customer base includes agencies in the intelligence community.
The Anser Advisory federal arm was unveiled in October after its acquisition of Markon Solutions, which is the branding that business unit operates in the market as.
Sterling Investment Partners is the private equity backer of Anser, which touted having 650 employees at the time of the Markon transaction.
Castellum
During the Christmas-New Year’s week, the defense technology integrator was cryptic about a letter of intent it had signed to acquire another company focused on information warfare.
Fast forward to Friday and Castellum can now say it has signed an agreement to purchase Lexington Solutions Group, which generated around $4 million in annual revenue.
In the announcement, Castellum CEO Mark Fuller said that transaction takes the company above “$42 million of annualized revenue on a run-rate basis” and has identified further opportunities for other acquisitions.
Potomac, Maryland-headquartered Castellum’s stock currently trades outside of supervised exchanges. But Castellum has said it is seeking to list on the New York Stock Exchange American that focuses on small and mid-cap companies.
CyberPoint3 Holdings
With a pair of acquisitions now done, this private equity-backed provider of computer network security solutions is ready to work with the national security and critical infrastructure communities on their cyber efforts.
No terms were disclosed regarding CyberPoint3’s purchases of Point3 Security and P3F announced Tuesday. CyberPoint3 is backed by the investment firm Cyber Capital Partners.
CyberPoint3 touts its areas of focus as including cyber force training, mission command-and-control, research-and-development, and vulnerability testing.
SKB Capital LLC acted as financial adviser and Freeman | Lovell PLLC is acting as legal adviser to Point 3 Security and P3F. Parker Poe Adams & Bernstein LLP is acting as legal adviser to CyberPoint3 and Cyber Capital Partners.