The professional and technical engineering firm NV5 Global [NVEE] last month completed its $318 million acquisition of Quantum Spatial, Inc. (QSI), significantly expanding its geospatial solutions capabilities and offerings, and its presence in the federal market.

QSI gives NV5 capabilities in high value analytics and large-scale remote sensing as well as a nationwide customer footprint compared to NV5’s legacy geospatial operations that were largely based on the use of small drones in California. QSI sensing platforms include high-altitude fixed-wing aircraft, helicopters, and ground light detection and ranging radar.

QSI, which had about $128 million in sales last year, does 42 percent of its business with the federal government, 30 percent with commercial customers, and 28 percent with state and regional governments and entities.

Before the acquisition, NV5 did less than 10 percent of its business with federal clients, Dickerson Wright, the company’s chairman and CEO, said on a Jan. 7 call with analysts to discuss the deal.

QSI’s federal business is driven by increasing demand for geospatial solutions by Defense Department and civilian agency customers, which include the Army Corps of Engineers, Air Force, Navy, Federal Emergency Management Agency, the intelligence community, the National Oceanic and Atmospheric Administration and more. Applications include situational awareness, security, and others, NV5 said.

The geospatial market is growing at 15 percent annually and is expected to reach $130 billion by 2025, with NV5, combined with QSI, able to address $21.6 billion currently in the areas of data and mapping, vegetation management, asset management, DoD intelligence, and telecommunications asset management.

NV5 expects sales this year to be between $700 million and $730 million.

QSI was a portfolio company of Arlington Capital Partners. QSI’s financial adviser on the deal was Houlihan Lokey and NV5 was advised by Roth Capital Partners.