Trace3 enters federal market via acquisition

Trace3, a technology and business transformation consulting firm, has acquired a provider of software engineering and modernization services that also represents a foray into the government market for the buyer.

By purchasing Zivaro, Trace3 is establishing a third vertical alongside health care and financial services as part of a resourcing strategy unveiled in October.

Zivaro employs approximately 200 people and essentially becomes the first building block of what now operates as the Trace3 Government vertical, the companies said Thursday.

Irvine, California-headquartered Trace3 now touts a workforce of approximately 1,500 employees with Zivaro now in its fold. Financial terms were not disclosed.

Zivaro opened for business in 1998 and also touts managed hybrid cloud computing as a core service line, in conjunction with the software engineering and modernization work.

Zivaro has recorded approximately $53.6 million in unclassified prime contract obligations over the trailing 12 months with the Army being its largest customer at 49.5% of that spend, according to USASpending.gov.

The Interior and Treasury departments are also significant federal clients. State and local government agencies, health care, financial services, education and energy represent other markets of interest for Zivaro in addition to federal.