Aronson Capital Partners advises PROSOFT on the Sale of its Alliant Business Unit assets to Tribalco LLC

on Tuesday, 3 November 2015, Posted in Experience

Aronson Capital Partners is pleased to announce the acquisition of the Alliant Business Unit assets of Professional Software Engineering, Inc. (“PROSOFT”) by Tribalco, LLC. ACP served as the exclusive financial advisor to PROSOFT in this transaction. This acquisition was finalized following GSA’s approval of the contract novation on October 30th.

Under Alliant, GSA’s premier Government-wide Acquisition Contract (GWAC), Tribalco will provide a vast array of IT services and solutions worldwide for both Department of Defense and civilian agencies. With a $50B program ceiling, an ordering period through April 2019, and the ability to execute work through April 2024, this contract allows for long-term planning of large-scale program requirements.

“This contract is a key element of Tribalco’s growth strategy for the next five years,” said Michele Friedman, Tribalco’s Chief Operating Officer. “We are excited about expanding our relationship with the GSA and are pleased to be able to bring the industry’s best-in-class GWAC contract vehicle to our global customers.”

We believe this transaction highlights a key trend in the government technology M&A market. In this highly competitive industry, access to prime, full & open contract vehicles is critical for organic growth. Prime contractors continue to “squeeze” their subcontractors when customer pricing pressure or program cuts occur. Firms that possess the prime relationship can better maintain or expand profit margin. Therefore, there is strong buyer interest in targets with prime contract access, and a market for underutilized vehicles that can be sold and novated to an acquirer who can better leverage the contract. We welcome the opportunity to further discuss this trend and the market for contract acquisitions and divestitures.