NowVertical Group Inc. of Toronto has acquired government cloud computing consultancy Allegient Defense of Arlington, Virginia. The purchase price was roughly $10.4 million, though the final purchase price may vary based on longer term earn-out targets and achievements. A valuation based on an annual EBITDA multiple was not disclosed.
This is technology M&A deal number 342 that ChannelE2E has covered so far in 2022.
M&A: Government IT Consulting Expertise
Allegient Defense, which has roughly 75 employees, provides cloud computing, data analytics, artificial intelligence/machine learning, directed energy, autonomous aerial vehicles and next-generation weapons systems services and support to U.S. federal government customers, the seller indicates.
Allegient supports such organizations as the U.S. Office of Naval Research (ONR), Defense Advanced Research Projects Agency (DARPA) and United States’ departments of Defense, State and Energy and employs engineering, information technology, program and project management, executive support, data management and compliance talent, the company said.
Meanwhile, NOWVertical is a big data, analytics and intelligence software and services company that has M&A experience. For instance, NOWVertical acquired:
NOW Acquires Allegient: Next Chapter of Growth
Describing the latest acquisition, NOWVertical CEO Daren Trousdell said:
"In teaming up with Allegient, we continue to scale our government vertical. Allegient’s positive history of contract performance with the highest level of U.S. Federal Government customers, excellent management and administrative team and infrastructure mark a critical and exciting expansion of NOW’s public sector capabilities and offering. We are also thrilled to consider MVB Bank, who chose to finance this transaction in part given Allegient’s history of positive performance and profitability, as one of our new and trusted stakeholders."
Added Angel Diaz, PMP, CEO of Allegient, added:
"The resources and strength of NOW will allow Allegient to enter our next chapter of growth while maintaining our reputation for unparalleled customer service through our unwavering dedication to solving the complex challenges facing our customers. We're incredibly proud of everything we have accomplished at Allegient and look forward to growing as a part of the NOW team."
Government IT Consulting M&A: Q1 2022 Deals
Meanwhile, M&A activity in the government IT consulting market remains strong. Buyers in Q1 of 2022 included:
