The private equity group LLR Partners has acquired Paragon Technology Group, a small information technology (IT) supporting the Defense Department and federal health agencies.

Terms of the deal were not disclosed.

Paragon provides IT, systems engineering and design, and program management services to the Defense Department, including the United States Transportation Command, National Institutes of Health, and the Centers for Medicare and Medicaid Services.

Paragon’s annual sales exceed $40 million with the split roughly even between its DoD and federal civilian customers. The company has about 150 employees.

With the acquisition, LLR has named Scott Friedlander president and CEO of Paragon. Friedlander resigned as the president and CEO of federal IT services firm GTSI Corp. [GTSI] in the fall of 2010 to help ward off a potential contracting debarment in the wake of a 30-day federal contract suspension instituted by the Small Business Administration. Friedlander had been with GTSI for 10 years.

LLR has a variety of portfolio companies including several offering IT services and support to the DoD and health services community.

Paragon’s financial adviser on the deal was The McLean Group.