U.S. multinational private equity firm The Carlyle Group has announced the acquisition of a pair of government IT consulting businesses, buying IST Research and Two Six Labs. Financial terms of the deals were not disclosed.
These represent deals 95 and 96 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here. Moreover, M&A activity among government IT solutions providers remains steady.
The two acquired companies, both based in Virginia, will be merged to form Two Six Technologies. The business will offer technology and cybersecurity services to the intelligence community, Department of Defense, and other U.S. national security customers.
Carlyle Group Makes a Pair of Acquisitions; Forms Two Six Technologies
Headquartered in Arlington, Virginia, Two Six Technologies has over 285 employees and will have a technical presence in more than 40 countries. The new company has a combined contract ceiling of more than $400 million.
Two Six Technologies will be led by CEO Joe Logue, previously an executive vice president at Booz Allen Hamilton. Larry Prior will serve as chairman of the board. Prior previously was CEO of CSRA Inc. until its sale to General Dynamics.
Other key executives to know at Two Six Technologies include:
- Ryan Paterson, founder and CEO of IST Research, becomes chief growth officer.
- Chris Greamo, previously president and CEO of Two Six Labs, becomes chief technology officer.
IST Research's expertise spans open source data collection, population engagement and content discovery solutions, which it provided primarily to U.S. government customers.
Two Six Labs offers cybersecurity and advanced technology solutions for the US Government, including customers within DARPA, U.S. Cyber Command, the Department of Homeland Security and the broader Department of Defense and intelligence community.
Building Six Two Technologies: Executive Insight
IST Research's Ryan Paterson commented on the deal:
“We could not be more excited about the combination of this team’s capabilities. Joining forces with another team that shares our passion for applied research and operational excellence was an easy decision for us; this merger is definitely a case where 1 + 1 is far greater than 2.”
Two Six Labs’ Chris Greamo added:
“Two Six and IST Research have collaborated successfully for years, and personally I have worked with Ryan for over a decade. IST Research and Carlyle are ideal partners as we embark on the next chapter of Two Six’s journey, evolution, and growth. The IST and Carlyle teams share our long-standing commitment to building an industry-leading culture and team, developing innovative technology solutions that serve critically important missions of national security. We look forward to combining Two Six’s products and capabilities with IST’s to further enhance and accelerate our team’s impact to our customers and the nation.”
Two Six Technologies’ new CEO Joe Logue said:
“IST Research and Two Six Labs are outstanding strategic and cultural fits for the platform we are building. IST’s leading Pulse technology platform and Two Six’s world-class research and development capabilities and proven history of successfully transitioning research projects to fielded, operationalized solutions will serve as the foundation for what we are building at Two Six Technologies.”
Dayne Baird, a managing director at The Carlyle Group, added:
“We are very excited to partner with Joe Logue and the broader Two Six Technologies team to build a platform focused on solving critical national security problems through unique technology solutions. Two Six Labs and IST Research both have strong cultures focused on innovation, customer mission success, and attracting the best talent. We look forward to supporting the continued growth of the combined business.”
Raymond James & Associates acted as the exclusive financial advisor for both IST Research and Two Six Labs in connection with their respective transactions. King & Spalding served as legal advisor to Two Six Labs, while Holland & Knight acted as legal advisor to IST Research.
Latham & Watkins LLP acted as legal advisor to Carlyle in connection with the transactions.
