An affiliate of Arlington Capital Partners (Arlington), a Washington, DC-area private equity firm, is to acquire Systems Planning & Analysis (SPA) from CM Equity Partners and SPA Management.
The agreement is subject to customary closing conditions and regulatory approvals.
Following closing, Arlington’s existing portfolio company, MCR will be combined with SPA. Dr William Vantine, SPA President and CEO, will serve as President and CEO of the combined company.
Arlington’s investment facilitates the creation of a combined company that will provide specialised advisory solutions to the most critical and complicated government missions. In joining forces, the companies represent the premier independent advisory firm with over 1,200 employees, approximately half of which hold advanced degrees, ~USD350 million in revenues and 125 proprietary software tools. The transaction brings together two great companies to form an organisation that is not only specifically built to serve government customers in a non-conflicted fashion, but also to provide a workplace that is tailor-made to cultivate and support highly-credentialed subject matter experts who are invaluable to missions of national importance.
Founded in 1972, SPA provides systems engineering, modelling and simulation, advanced analytics, strategic advisory, industrial policy and program management to government and defence customers in the United States and Australia, including Strategic Systems Programs, the broader undersea and surface warfare community within the US Navy, Office of the Secretary of Defense (“OSD”), Defense Threat Reduction Agency (DTRA), Space Force, Air Force and the Australian Department of Defence.
Vantine says: “We are thrilled to be partnering with Arlington and MCR to fill an important void in the market and create an unmatched leader within the technical government advisory ecosystem. By leveraging the historical individual successes across each of our companies and pooling our organic investments in facilities, R&D and our employees, we are excited to move out to achieve our strategic vision after closing.”
David Wodlinger, a Partner at Arlington, says: “We have long recognised the invaluable contributions to the mission that a unique cadre of elite advisory firms like SPA and MCR provide. We are excited to honour that proud tradition and help further the reach and deepen the capabilities of SPA and MCR by creating a combined enterprise that builds upon their complementary customer bases, geographies and intellectual property.”
Peter Schulte, Managing Partner at CM Equity Partners, says: “We are so pleased to have Arlington Capital Partners carry on the culture, quality, and great work of SPA and look forward to seeing the company continue its success and important service to its National Security customers.”
Bill Parker, CEO of MCR, says: “MCR and SPA are two sides of the same coin. Our strength with customers such as the Space Force and Air Force perfectly complement SPA’s unique positions with customers like the Navy, DTRA and OSD. The combination will provide significant career advancement opportunities for our employees, and new capabilities and offerings for our customers.”
Ben Ramundo, a Vice President at Arlington, says: “We are eager to build another platform serving the most important missions within the national security community. Through a combination of internal investments to supercharge what makes both companies special and potential acquisitions of other industry leading firms, the organisation is primed to deliver its technical excellence to an ever expanding customer set.”
Sheppard Mullin and Morrison Foerster are serving as legal advisors to Arlington. Baird is serving as financial advisors with Squire Patton Boggs and Rees Broome serving as legal advisors to SPA. The transaction is expected to close in the coming weeks.
