Private equity firm McNally Capital acquired Xcelerate in early 2023.
Xcelerate Solutions and fellow government technology integrator VMD are joining forces in a move to build a larger portfolio of secure IT platforms and services to federal agencies.
The combined company will operate as Xcelerate Solutions with a team of 1,000 technology professionals. Xcelerate said Wednesday its core service offerings encompass cybersecurity, enterprise security and infrastructure protection services.
Private equity firm McNally Capital acquired Xcelerate in early 2023 as part of an emphasis on founder- and family-owned government contractors.
“Since the investment from McNally Capital, we’ve been actively looking to expand our security and IT capabilities through M&A," Xcelerate's founder and chief executive Mark Drever said in a release.
At the time of McNally's purchase, Xcelerate set a goal of $500 million in annual revenue within the following three-to-seven years through both organic growth and acquisitions.
VMD opened for business in 2002 as a provider of cybersecurity, agile engineering and critical infrastructure protection to federal agencies.
Ropes & Gray and Nelson Mullins acted as legal advisers on the transaction.