Aronson Capital Partners advises Proteus Technologies on its Sale to Polaris Alpha, a Portfolio Company of Arlington Capital

on Monday, 14 November 2016, Posted in Experience

Aronson Capital Partners is honored to have served as the financial advisor to PROTEUS Technologies (“PROTEUS”) in its acquisition by Arlington Capital Partners, as part of a merger of EOIR Technologies and Intelligent Software Solutions (“ISS”) to create Polaris Alpha (“Polaris”). ACP served as the exclusive financial advisor to PROTEUS in this transaction.

Established in 1999, PROTEUS is an innovative, leading-edge software and systems engineering solutions firm specializing in the development and deployment of cutting-edge solutions that support the Intelligence Community’s cyber security, signals intelligence, embedded engineering and research missions.

"Polaris will fill the void between niche players and prime contractors to deliver agile, sophisticated solutions to a growing number of government customers disillusioned with the traditional options available to them," said Michael Lustbader, a Managing Partner at Arlington Capital. "Polaris is a byproduct of the infusion of innovation into the national security sector and is contractually well-positioned to capitalize on this market opportunity." Polaris has over 1,100 employees and projects over $250 million in 2017 revenue.

ACP believes this transaction follows recent trends and signals future themes in the defense and government services M&A market:

  • Growth in cyber security and cyber intelligence spending drives M&A, especially for targets that have cleared, experienced engineers with footholds at key intel agencies.
  • Industry focused private equity firms continue to execute on “buy & build” strategies to form portfolio companies that can provide a full spectrum of collection, processing and analytics solutions in response to customer requirements.
  • Privately held targets with prime contract portfolios in the national security sector command significant interest from the buyer community.

Aronson Capital Partners is a leading M&A advisor to middle-market defense and government technology solutions providers having completed over 70 transactions in the sector. For a comprehensive update of industry M&A activity, please read our quarterly newsletter.