Arlington Capital Partners has acquired Integrity Applications, a provider of systems engineering and technical analysis to the intelligence and defense sectors.
Integrity Applications (IAI) has specific technical and domain expertise in intelligence, surveillance and reconnaissance systems including radar, electro-optical /infrared and MASINT (measurement and signature intelligence) payloads, ground systems, imagery-based geo-positioning and targeting, photogrammetric analysis, unmanned systems, and missile defense. IAI was founded in 1999 by Paul Frommelt, Steven Wear and Kenneth Abeloe. The company is headquartered in Chantilly, VA and has additional offices in California, Hawaii, Ohio, Michigan, Pennsylvania, Massachusetts, and Maryland (www.integrity-apps.com).
“Over the last twenty years, IAI’s distinguished employee base has supported the most demanding customers in the national security community with unique technical and domain expertise in key areas including space superiority, missile defense, and geospatial intelligence,” said David Wodlinger, a Partner at Arlington. “Through additional investments in human capital and technology, as well as strategic acquisitions, we are excited to support management’s efforts to further broaden IAI’s differentiated capabilities, resulting in superior mission outcomes for its customers and expanded career opportunities for its employees.”
Arlington plans to combine IAI with its existing portfolio company Xebec, a provider of human intelligence and IT services to intelligence agencies, which was acquired in September 2017. Xebec was founded in 2006 and is based in McClean, VA (www.xebecglobal.com).
“The IAI team is thrilled to join forces with an industry-focused investor like Arlington Capital that shares our vision for the company’s future,” said IAI CEO Dave Dzaran. “Beginning with our combination with Xebec, we are excited to build a premier intelligence community technology provider with the resources and collective expertise to solve our customers’ most complicated challenges. The legacy that IAI has built will continue and be strengthened by the contributions of our new partners.”
Arlington invests in buyouts and recapitalizations of companies valued from $50 million to $500 million. Sectors of interest include government services and technology; aerospace and defense; healthcare; and business services and software. Arlington is investing out of its fourth fund which closed in July 2016 with $700 million of capital. The firm is based in Chevy Chase, MD (www.arlingtoncap.com).
“IAI and its accomplished employees have deep connections to national assets that are managed by the Intelligence Community and Department of Defense,” said Ben Ramundo of Arlington Capital. “The mission and successful functionality of many of these systems have been guided by the company’s technology and innovative culture, both of which are dedicated to advancing our nation’s security posture in newly-contested domains.”
Paul Frommelt, Steven Wear, and Kenneth Abeloe, the co-founders of IAI, participated in this transaction and will remain involved in IAI’s future growth initiatives.
© 2018 Private Equity Professional | February 16, 2018