SC&H Group Blog: "Expertise Beyond the Numbers"

SC&H Capital Helps a Mid-Atlantic Defense Contractor Grow Through M&A

In an era where government spending remains flat, many government contractors are seeking to supplement organic growth with strategic acquisitions. Acquisitions can be a viable way for many contractors to provide existing capabilities to a wider base of federal customers or add new capabilities for existing customers.

SC&H Capital recently served as the exclusive financial advisor to the shareholders and the Board of Directors of Sage Management Corporation on one such strategic acquisition. Sage was acquired by Xator Corporation in a deal that will provide the company with opportunities to expand their reach into a new customer base and provide additional services to their existing customers.

Sage is a leading provider of software engineering, cyber security solutions, and Chemical, Biological, Radiological, Nuclear and Explosive (CBRNE) services to the Intelligence Community (IC) and other agencies within the Department of Defense. This acquisition helps expand Xator’s CBRNE capabilities and reach into the IC.

“We are excited about the acquisition by Xator and the opportunity for us to leverage our existing capabilities into additional federal customers. There are tremendous opportunities for synergies between the two companies that will result in a more fully developed security offering for all of our federal clients,” stated Sean Keller, the President and CEO of Sage. “SC&H Capital’s steady hand and experience within the Intelligence Community was crucial to helping us navigate the process and successfully close this transaction.”

As SC&H Capital recently highlighted in its quarterly Government Contractor Market Update, there is significant consolidation occurring among government contractors, with much of this activity being driven by opportunities in new contracting arenas and agencies.

Are you a government contractor seeking insights into the current M&A environment, or do you want to discuss your exit strategies/M&A options? If so, please contact SC&H Capital here.

SC&H Capital’s merger and acquisition (M&A), employee stock ownership plan (ESOP), capital raising, and business valuation solutions have assisted companies nationwide and across numerous industries. By leveraging its investment banking expertise, industry relationships, and extensive tax and consulting resources, SC&H Capital helps owners achieve their exit planning goals, liquidity plans, and growth objectives. Learn more here.

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