NewSpring Holdings has acquired C Speed, a provider of radar systems and engineering services for civilian and military applications. This is the fourth platform NewSpring Holdings has formed over the past fifteen months.
C Speed specializes in designing, prototyping, and manufacturing radar systems, including radar receivers, exciters, and signal processors. One of its key products is the “LightWave Software Defined Radar Platform,” a software-based radar system designed to modernize legacy radar used by civilian and military surveillance applications.
C Speed’s customers include defense contractors and government agencies such as the U.S. Air Force, U.S. Army, U.S. Navy, Department of Homeland Security, and NATO. CEO Dave Lysack leads C Speed, which is headquartered near Syracuse in Liverpool, New York.
“With over 30 years of experience in the radar industry, our business continues to innovate, supporting national and international defense initiatives beyond our traditional software-defined radar/modernization business,” said Mr. Lysack. “We’re entering a pivotal phase of expansion, and NewSpring Holdings brings the expertise, network, and strategic support we need to help us capitalize on new opportunities. We’re thrilled to partner with the entire NewSpring team as we seek to leverage our technology in new ways to address emerging threats.”
The acquisition of C Speed establishes the latest platform company within the NewSpring Holdings Federal Platform, a group of businesses providing services and equipment to the U.S. government. Previous investments under this strategy include the July 2023 acquisition of BCore, a Virginia-based provider of intelligence, cybersecurity, and other technical services to the U.S. intelligence community. Before that, NewSpring Holdings acquired Avantus Federal, which delivered data, cyber, and space services to defense, intelligence, and homeland security agencies. Avantus was sold to KKR for $590 million in 2022.
As part of this transaction, NewSpring has appointed Andy Maner, the former CEO of Avantus, and Lt. Gen. Kevin McLaughlin, USAF (Ret.), to the C Speed Board of Directors.
“Given the federal government’s increasing emphasis on domestic border security and force protection for the U.S. Military and our allies, we see massive opportunity for C Speed. NewSpring Holdings has a proven track record of taking successful lower-middle-market businesses and applying its repeatable, thesis-driven value creation approach to elevate their growth potential,” said Mr. Maner. “We’re building a holistic portfolio of federal services companies designed to meet the evolving needs of government agencies, and we look forward to driving growth and amplifying C Speed’s impact in this critical sector.”
“An era of rapidly evolving threats, accelerated innovation cycles, and scrutiny on spending effectiveness and efficiency present unique challenges for the defense and federal sector broadly. More than ever, we see the crucial role of an innovative partner that delivers integrated, modular sensing capabilities at a competitive price point,” said Lee Garber, a general partner at New Spring. “Our partnership with C Speed aligns with NewSpring’s vision to support growth and innovation within the national security and defense sector.”
NewSpring Capital provides private equity capital through five strategies: growth, healthcare, holdings (buyouts), franchise, and mezzanine. For its holdings strategy, NewSpring seeks companies with $5 million to $100 million in revenue and at least $2 million of EBITDA active in financial services/technology, transportation and logistics, IT/telecom, and business/government services. NewSpring is headquartered near Philadelphia in Radnor, Pennsylvania.
© 2024 Private Equity Professional | October 9, 2024