Salient Federal Solutions and CRGT announce merger
Salient Federal Solutions, Inc. (“Salient”), of Fairfax, VA, and CRGT Inc. (“CRGT”) announced on August 11 an agreement to merge, forming Salient CRGT. The merger of equals positions the newly combined company for leadership in meeting the IT modernization and business intelligence needs of federal agencies and other government customers through greater technical expertise, enhanced mission capabilities and broader resources. The combined company is backed by two private equity firms, Bridge Growth Partners, LLC and Frontenac Co, both with extensive experience in the federal services sector.
With a broad portfolio of innovative solutions in Agile software development, data analytics, mobility, and cyber security, it is anticipated that Salient CRGT will generate approximately $375 million in annual revenue and employ more than 1,700 people. By combining Salient and CRGT’s respective track records of success across a more diverse federal customer base with access to significant contract vehicles including Alliant, Encore, NIH CIO-SP3, DHS Eagle II, and Treasury TIPSS-4, Salient CRGT creates a robust platform for growth.
Brad Antle, President and Chief Executive Officer of Salient Federal Solutions, will serve as Chief Executive Officer of Salient CRGT and Tom Ferrando, President and Chief Executive Officer of CRGT, will serve as its President. Kevin Parker, from Bridge Growth Partners, will serve as Chairman of the Board of Directors.
“This is a unique opportunity to significantly expand the already strong capabilities of both organizations for the direct benefit of our customers,” said Mr. Antle. “As one team, Salient CRGT will have the deep resources and expertise to deliver a broader portfolio of innovative solutions and specialized services across the entire federal IT marketplace.”
“We have a deep understanding of the technology challenges facing federal civilian and defense agencies and fully embrace their missions as our own,” said Mr. Ferrando. “Salient CRGT is very well-aligned with Government IT spending priorities and the continuing focus on IT modernization across the broad spectrum of federal agencies, and we are now positioned better than ever to be the partner of choice for agency customers that demand value and successful outcomes.”
“We look forward to working with both Brad Antle and Tom Ferrando, and are very pleased to be partnering with the Bridge Growth team. We have a shared view on the market opportunity, and this transaction reflects that, while strengthening and expanding Salient CRGT’s position as a premier government contractor,” said Frontenac Managing Partner, Walter Florence.
“The exciting combination of Salient and CRGT creates a broader platform from which to pursue additional growth opportunities while leveraging the ongoing consolidation of the federal IT services industry,” said Alok Singh, Co-founder and Managing Principal of Bridge Growth Partners. “We look forward to supporting Salient CRGT’s leadership team and are delighted to be partnering with Frontenac.”
Terms of the transaction, which is expected to close early in the fourth quarter, were not disclosed.
Source: Salient Federal Solutions