Arlington Capital-backed Octo, a provider of emerging technology and IT modernisation services for the Federal Government, has merged with Sevatec, a leading provider of mission-critical software development solutions and digital modernisation services to the Federal Government. The combination of Octo and Sevatec creates a highly agile partner to government customers that can address complex technology challenges with innovation, high-touch service, and substantial technical and operational resources.
The combined organisation has grown every year since inception and today generates nearly USD300 million of revenue and employs approximately 1,100 skilled employees dedicated to solving technical challenges for government customers across the Defense, Intelligence, National Security, Federal Health, and Civilian marketplaces.
Michael Lustbader, a Managing Partner at Arlington Capital, says: “Individually these two companies are extremely well-managed and consistently deliver for their customers, while also caring for their employees. You see that reflected in their continuous growth through the years. We have admired Sevatec for some time, and we felt this would be a fantastic combination. Arlington is really excited to see what can be accomplished together.”
Founded in 2003, Sevatec drives advancements in technology, open-source tooling, and commercial best practices in human-centred design, Agile delivery, DevSecOps, end-to-end security, cloud service integration, data engineering, and automation. In addition to holding several highly strategic contract vehicles, Sevatec has been awarded almost USD400 million of recent prime contracts wins.
Ben Ramundo, a Vice President at Arlington Capital, says: “The combination of Octo and Sevatec will yield an organisation that is purpose-built to address complicated modernisation requirements by leveraging the innovative spirit that fuelled each company’s individual momentum. When capabilities, end markets and culture align in such a complementary fashion, the benefits reaped by federal customers and employees are limitless.”
Sevatec’s core leadership team will play key roles in the combined business. As a part of the transaction, Sonny Kakar will serve as Vice Chair of the Board and Head of Strategy. Tim May, Sevatec’s Chief Growth Officer, will serve as the Chief Growth Officer for the combined organization. Furthermore, Chuck Schefer, EVP at Sevatec, will serve as EVP managing programs in the GSA, DHS, and USPTO markets. Mehul Sanghani will continue to serve as the combined firm’s CEO.
Sonny Kakar, Founder and CEO of Sevatec, said, “I have known Mehul for years and have admired deeply what Octo has been able to achieve. Octo was the only company we considered for such a transaction. While the industrial logic of the merger resonated tremendously with us both, it also became evident that it would create significant growth opportunities for our employees and allow the combined business to compete at scale and solve some of the most pressing challenges facing our customers.”
“With this transaction, I firmly believe we have created a unique, market-shaping organization that is unmatched in terms of its collective ability to be a pure-play modernization and technology solutions provider to the Federal Government and its wide-ranging missions,” said Mehul Sanghani, Octo’s Founder and CEO.
