GovernmentCIO, a provider of technology and digital solutions to the federal health information technology (IT) services market last Thursday said it agreed to acquire Salient CGGT (SCRGT) in a deal that will diversify the company’s customer base and create a $700 million company.
GovCIO, which is based in Washington, D.C., is a portfolio company of Welsh, Carson, Anderson & Stowe (WCAS) and primarily serves the Department of Veterans Affairs. SCRGT, which is based in Northern Virginia, has customers in the federal civilian, federal health, and national security sectors, including the Air Force and U.S. Cyber Command.
The deal is expected to close during the third quarter subject to regulatory approvals. Once the deal is completed, GovCIO will have more than 2,200 employees.
GovCIO CEO Jim Brabston will continue to lead the company. Tom Ferrando, SCRGT’s CEO, will join the board of directors, and Phil Nolan, chairman of SCRGT, will become chairman of GovCIO.
“SCRGT’s highly differentiated ability to deliver innovative solutions and strong customer relationships have fueled its success to date, positioning it as a clear market leader,” Brabston said in a statement. “Together, we are confident that we have the scale and additional capabilities to deliver even greater value to a broader set of federal customers.”
GovCIO has capabilities in data analytics and data mining, cybersecurity, and digital and IT transformation. SCRGT has capabilities in IT engineering and operations, cloud and agile software development, digital services, cybersecurity, data analytics, and consulting.
WCAS said the acquisition aligns with its “goal to rapidly grow [GovCIO] through a focused acquisition strategy.”
SCRGT is owned by Bridge Growth Partners and Frontenac.
DC Advisory is the financial advisor for GovCIO and WCAS on the deal and SCRGT is being advised by Robert W. Baird & Co. and Guggenheim Securities.