Aronson Capital Partners Advises Cyber Intelligence Firm, Zytel Corporation, on its sale to Global Defense Technology & Systems, Inc. (NASDAQ: GTEC)

Aronson Capital Partners (“ACP”) is pleased to announce the acquisition of our client, Zytel Corporation, by Global Defense Technology & Systems, Inc. (“GTEC”).  GTEC acquired Zytel to expand its presence in the Intelligence Community and its capabilities in cyber intelligence and cyber warfare.

 

Zytel, based in the Ft. Meade area, is an industry leader in the design and development of next generation, net-centric mission solutions that collect, protect, and analyze vital information in cyberspace by leveraging its core competencies in systems engineering and architecture, software development, data fusion and intelligence analysis.

 

We believe this transaction illustrates a number of key trends in government technology M&A:

 

  • Cyber intelligence and cyber security companies continue to be a top acquisition priority for strategic buyers as evidenced by the premium valuation multiples paid for these businesses
  • Strong organic growth continues in the cyber security market despite declining growth rates in aggregate Federal IT spending due to budgetary constraints
  • A thorough understanding of Organizational Conflict of Interest (OCI) regulations and policies by an experienced advisor is a key ingredient to a successful M&A transaction involving a Systems Engineering and Integration (SE&I) contractor

 

Aronson Capital Partners is a leading M&A advisor to middle-market government contractors and professional services organizations.  ACP provides a full range of M&A and corporate finance advisory services to help clients achieve their growth and liquidity objectives.  With our exclusive focus on the federal sector, we are able to provide clients with a unique industry perspective and access to long standing relationships with the most active strategic buyers.

 

Contacts

 

Philip J. McMann
Partner
301.231.6202
pmcmann@aronsoncapitalpartners.com

 

Larry A. Davis
Partner
301.231.6225
ldavis@aronsoncapitalpartners.com

John H. Saunders
Partner
301.231.6209
jsaunders@aronsoncapitalpartners.com

on Friday, 1 October 2010, Posted in Experience

Aronson Capital Partners (“ACP”) is pleased to announce the acquisition of our client, Zytel Corporation, by Global Defense Technology & Systems, Inc. (“GTEC”).  GTEC acquired Zytel to expand its presence in the Intelligence Community and its capabilities in cyber intelligence and cyber warfare.

 

Zytel, based in the Ft. Meade area, is an industry leader in the design and development of next generation, net-centric mission solutions that collect, protect, and analyze vital information in cyberspace by leveraging its core competencies in systems engineering and architecture, software development, data fusion and intelligence analysis.

 

We believe this transaction illustrates a number of key trends in government technology M&A:

 

  • Cyber intelligence and cyber security companies continue to be a top acquisition priority for strategic buyers as evidenced by the premium valuation multiples paid for these businesses
  • Strong organic growth continues in the cyber security market despite declining growth rates in aggregate Federal IT spending due to budgetary constraints
  • A thorough understanding of Organizational Conflict of Interest (OCI) regulations and policies by an experienced advisor is a key ingredient to a successful M&A transaction involving a Systems Engineering and Integration (SE&I) contractor

 

Aronson Capital Partners is a leading M&A advisor to middle-market government contractors and professional services organizations.  ACP provides a full range of M&A and corporate finance advisory services to help clients achieve their growth and liquidity objectives.  With our exclusive focus on the federal sector, we are able to provide clients with a unique industry perspective and access to long standing relationships with the most active strategic buyers.

 

Contacts

 

Philip J. McMann
Partner
301.231.6202
pmcmann@aronsoncapitalpartners.com

 

Larry A. Davis
Partner
301.231.6225
ldavis@aronsoncapitalpartners.com

John H. Saunders
Partner
301.231.6209
jsaunders@aronsoncapitalpartners.com