The private equity firm Arlington Capital Partners on Monday evening said it has acquired the government information technology (IT) services business of digital solutions provider Black Box Corp. [BBOX] and has renamed its new portfolio company Tyto Athene.
Black Box, which is based in Pittsburgh, Pa., said the sale price was $75 million and was completed on a debt free, cash-free basis. Arlington Capital has renamed its new portfolio company Tyto Athene.
Arlington Capital said that Tyto, which is based in Northern Virginia, provides systems integration and managed services of communications systems for the Defense Department and federal civilian agency operations worldwide. On its website, Tyto says it helps its clients make decisions by “providing ubiquitous and secure access to information throughout their operating environment.”
Tyto’s prime contracts include the Air Force NETCENTS 2, General Services Administration (GSA) Connections II, the NATO Communications and Information Agency Basic Ordering Agreement, and a GSA region telecommunications services award. The company is also subcontractor on a number of large multiple award government contracts.
“We have been very impressed with the management team and the differentiated solutions that the company provides to their government clients as well as the company’s ability to develop new technologies such as the Acuity Micro Data Center,” Michael Lustbader, a managing partner at Arlington, said in a statement. “We believe this technology will successfully address a strategic gap at the edge of the information infrastructure of Tyto Athene’s clients. Additionally, we believe that the company will benefit from a number of secular tailwinds that will allow it to continue its strong performance as the U.S. government modernizes its legacy IT infrastructure.”
Tyto Athene’s existing management will continue to lead the company with Jeff Murray, the current senior vice president of Black Box Government Solutions, as CEO. Chris Meilhammer will be the company’s chief operating officer, and Jason Alexander will continue to lead the service delivery teams as vice president of Operations.
Murray said in a statement that becoming an independent company within Arlington will give it a “greater level of flexibility” to meet the “increasingly complex information needs of our clients.”
Black Box’ divestiture of its government business was part of a strategic review of alternatives, which is ongoing. Raymond James & Associates served as financial adviser to Black Box on the deal and Jones Day provided legal advice.