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A handful of space and defense tech M&A moves to highlight
One of these transactions involves three defense technology and professional services providers, which are joining forces with private equity backing.
Auria
The space software specialist has made a pair of purchases aimed at further extending into space-based communications and intelligence.
RKF provides satellite communications engineering and spectrum management tools to Space Force and other federal and commercial entities, while Kythera designs its software suite to help operators autonomously manage in-orbit SATCOM and spectrum resources.
By acquiring those businesses, Auria is seeking to build its technical capabilities in SATCOM and position across all phases of the space lifecycle. This includes the space asset and payload in-orbit, plus ground systems and operators.
Private investment firm Enlightenment Capital backs Auria, which unveiled that branding and identity to the market at the start of 2024.
Expansia, John H. Northrop & Associates, and Coherent Technical Services
These defense technology and professional services providers are joining forces to form a ;arger company following their acquisition by the private equity firm Falfurrias Management Partners.
The combined organization employs 525 people and operates a 100,000-square-foot facility in Patuxent River, Maryland to handle the entire product development lifecycle. This new company’s customer base includes the Defense Department, Defense Advanced Research Projects Agency, NASA, Navy, Army, Air Force and Space Force.
Data from USASpending.gov pegs Expansia’s unclassified prime contract revenue over the trailing 12 months at $47.7 million, followed by JHNA at $5.7 million and CTSI at $10.8 million.
JHNA’s chief executive Ian Northrop has been appointed to lead the combined company. Falfurrias' Marybeth Wootton, Joe Price and Grant Hundley will all join the company’s board. AJ and Tynel Jarnagin, Expansia’s co-founders and respectively CEO and chief people officer, will leave in the spring to prepare for a mission with The Church of Jesus Christ of Latter-Day Saints.
KippsDeSanto and Holland & Knight advised Expansia. financial and legal advisers. Focus Investment Banking and Crowell & Moring advised CTSI. Bradley was JHNA's legal adviser and Falfurrias was supported by McGuireWoods.
Outpost Mission Services
Formerly known as Radome Services, this company focused on the space domain’s ground infrastructure has been acquired by the private equity firm Washington Harbour Partners.
Outpost Mission Services will also become the vehicle for further investments by WHP, including acquisitions of other businesses, to become a larger player in an aspect of space they see as underserved by industry.
Outpost’s primary line of work includes inspection, repair and maintenance services of radomes. These enclosures are designed to protect antennas from degradation as a result of weather and environmental conditions, plus interference.
Heather LaRowe and Nate Walbridge will continue to lead Outpost in their respective roles as president and chief growth officer.
Outpost has recorded $2 million in unclassified prime contract revenue over the trailing 12 months. The National Oceanic and Atmospheric Administration is Outpost’s largest customer at 90% of the spend with the Navy making up the remaining 10%, according to USASpending.gov data.
WHP was advised by Morrison Foerster and PwC on the transaction.
Titan Technologies
This provider of managed IT and systems integration services has purchased a specialist in enterprise cybersecurity operations, ranging from threat hunting to the use of artificial intelligence tools in mitigating breaches.
Zen Strategics opened for business in 2010 and also describes data management and cloud computing modernization as among its core service lines.
Titan now employs approximately 900 people with this transaction, which further expands the company’s footprint across the federal landscape. Titan’s customer base also includes state and local government agencies.
Zen has recorded approximately $23.3 million in unclassified prime contract revenue over the trailing 12 months. The Education Department and U.S. Citizenship and Immigration Services are Zen’s largest customers at 49% and 46% of the spend respectively, according to USASpending.gov data.
SD Capital and Cooley LLP advised Titan. Sikich and Greenburg Traurig LLP advised Zen Strategics.