Aronson Capital Partners (“ACP”) is pleased to announce the acquisition of Base2, LLC by BlueHalo, a portfolio company of Arlington Capital Partners. Aronson Capital Partners served as the exclusive financial advisor to Base2 during the transaction.

Base2 is a Maryland-based premier provider of complex, mission-critical cyber and SIGINT solutions in support of national security. Base2 specializes in the design and development of cutting-edge cyber solutions across the domains of Computer Network Operations (“CNO”), Signals Intelligence (“SIGINT”), and Quick Reaction Capability (“QRC”). Base2’s comprehensive technical capabilities cover the design, development, prototyping, and deployment of hardware, software, and mechanical products.

Along with the acquisition of Base2, BlueHalo acquired Fortego, a Maryland-based provider of advanced SIGINT and cyber operations solutions, with end-to-end solutions in cyber analytics, vulnerability research, and CNO engineering. The two companies have highly complementary capabilities that, together with BlueHalo, will enable the Company to address the most complex cyber programs in the national security community. BlueHalo’s accelerated growth strategy will expand BlueHalo’s cyber and SIGINT offerings across its portfolio of solutions addressing manned and unmanned aircraft, missile defense, and space assets on orbit.

“We reached a point where it was time to consider being part of a larger organization that could help our company grow long-term. BlueHalo resonated with us because they focus on solving the hardest engineering problems while contributing to national defense imperatives. They understand the mission, and the importance of making the mission happen. In BlueHalo, we saw a larger version of ourselves. We are excited to stay on and join a like-minded organization that can help us achieve our aspirations with greater impact,” stated Base2 co-owners, Edward Wright and Michael Curry.

ACP believes this transaction highlights several key trends in the lower middle M&A market:

  • The ever-evolving SIGINT and cybersecurity market is poised for growth as the virtual battlespace remains fluid and is critical to national security
  • Buyers are focused on acquisition targets with domain expertise in mission-enabling technology solutions and direct access to critical, well-funded programs across the IC
  • Sponsor-backed buyers are deploying buy-and-build strategies to expand high-end capabilities, establish a foothold with coveted customers, and build scale within the middle-market

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