Haystax Technology said on Monday it has acquired NetCentrics Corp., adding to its capabilities and services while boosting its scale to go after more opportunities.
Terms of the deal, which closed on Aug. 1, were not disclosed.
Haystax said that with NetCentrics it expects to have about $105 million in sales this year. The company now has about 350 employees, with NetCentrics accounting for more than 250 of the total.
Haystax, which is based in Northern Virginia, was created in 2012 with funding by
Edgewater Funds with the goal of creating a mid-cap cyber security and analytics company. In 2013 Haystax acquired Digital Sandbox and Flexpoint Technology. The company expects to have about 1,000 employees and between $300 million and $500 million sales within the next five years, William Van Vleet, Haystax’ CEO told Defense Daily.
Haystax is looking to grow 25 percent organically on an annual basis and is looking for acquisition candidates with similar organic growth prospects, Van Vleet said. He added that a key discriminator for the company’s acquisition targets is cultural fit.
Prior to the NetCentrics deal, Haystax’ revenue was about 60 percent from its software products and 40 percent from services, Van Vleet said. After the acquisition, the company will generate about 75 percent of sales from services and the remainder from its products.
Haystax’ largest customer is the Defense Department. The company provides network and cyber security services for the Pentagon’s computer networks through a contract with the Washington Headquarters Services. In response to the Fort Hood shootings in 2009, the company also provides real-time analytics streaming solutions such as human behavior predictive threat detection on computer networks.
Van Vleet said that NetCentrics has deep expertise in cyber security and network protection that combined with Haystax’ human behavior analytics will allow it to create products to detect insider threats like Edward Snowden, who allegedly took classified data from the National Security Agency’s networks and leaked it to the media.
Haystax’ customers also include the Intelligence Community, state agencies, and state and local public safety agencies. The company also contracts with the National Football League for large events like the Super Bowl for its Public Safety Cloud, which provides risk management analytics.
Van Vleet was CEO of Applied Signal Technology prior to its acquisition by Raytheon [RTN] in 2011. He also worked for Boeing [BA].
The McLean Group served as NetCentrics’ financial advisor on the deal.