DMI sells part of its commercial portfolio

DMI has sold a large piece of its commercial portfolio to another company in a move to sharpen DMI's focus on technology and managed service offerings for government and certain private sector clients.

Encora, a digital engineering services provider, has added approximately 750 employees that work with large global enterprises on their digital transformation efforts. DMI becomes a 1,200-person company after this transaction announced Thursday, which financial terms were not disclosed.

For DMI, this divestiture follows its three most recent acquisitions that focused almost exclusively on government agencies.

DMI now touts its six core focus areas as including managed services, network management, artificial intelligence-driven solutions, application development, cloud modernization and cybersecurity innovations.

The OceanSound Partners-backed contractor also plans to continue its collaboration with global commercial tech brand names such as Amazon Web Services, Microsoft, Google Cloud, Salesforce and ServiceNow.

Encora is using this transaction to further push for expansion across industries such as automotive, health care and life sciences, retail and consumer-packaged goods, and travel and logistics.

Gibson, Dunn & Crutcher LLP and Guggenheim Securities advised DMI on the transaction.