Here's the Deal
Baird's Investment Banking Group is pleased to announce the following transaction:
Salient CRGT, a portfolio company of Bridge Growth Partners and Frontenac, has agreed to be acquired by GovernmentCIO (“GovCIO”), a portfolio company of Welsh, Carson, Anderson & Stowe (“WCAS”). The transaction is expected to close in the third quarter 2021, subject to regulatory approvals and other customary closing conditions.
Salient CRGT is a leading provider of data analytics, cloud, agile software development, cyber security, and enterprise solutions to U.S. national security, federal civilian, and federal health agencies. With a dedicated focus on full lifecycle Enterprise IT, Salient CRGT has long history of innovation, collaboration and success delivering solutions for complex customer challenges with success winning and executing programs of scale. Salient CRGT is headquartered in Fairfax, Virginia.
The combination of GovCIO and Salient CRGT will bring together two premier, complementary providers of government IT solutions to form a diversified, best-in-class platform well-positioned to meet the evolving needs and priorities of government customers. The combined company will have more than 2,200 employees and revenues of approximately $700 million in 2021.
GovCIO’s acquisition of Salient CRGT illustrates the following buyer priorities in Government & Defense M&A: (1) market priority for companies of scale with breadth of Enterprise IT capabilities; (2) robust growth engine with premier business development approach; and (3) focus on delivering and executing on programs of scale.
GovCIO is a rapidly growing provider of advanced technology solutions and digital services to the federal government. In the 11 years since its founding, GovCIO has become a leading prime contractor supporting the mission of federal health agencies, including the Department of Veterans Affairs, the Department of Health and Human Services, Internal Revenue Service and the Department of Homeland Security. GovCIO’s core capabilities are in agile development, digital services, DevSecOps and IT modernization. GovCIO is headquartered in Washington, D.C.
Bridge Growth Partners, LLC is a private equity firm that targets investments in the technology and technology-enabled services sectors. Bridge Growth Partners brings together in one team premier investment, financial, strategic, and operating business building talent. The firm is committed to relationship-based investing, with a focus on supporting growth, operational excellence and world-class governance at its portfolio companies to create value for investors. Bridge Growth Partners is headquartered in New York, New York.
Frontenac is a Chicago-based private equity firm focused on investing in lower middle market buyout transactions in the consumer, industrial, and services industries. Frontenac works in partnership with established operating leaders, through an executive-centric approach called CEO1ST, which seeks to identify, acquire, and build market-leading companies through transformational acquisitions and operational excellence. Over the last 50 years, Frontenac has built a leading franchise working with over 275 owners of mid-sized businesses as they address complex transition issues of liquidity, management enhancement, and growth planning. Frontenac is headquartered in Chicago, Illinois.
WCAS is a leading U.S. private equity firm focused on two target industries: technology and healthcare. Since its founding in 1979, the firm's strategy has been to partner with outstanding management teams and build value for its investors through a combination of operational improvements, growth initiatives and strategic acquisitions. WCAS has deep experience in acquiring founder-led businesses and corporate carve-outs. The firm has raised and managed funds totaling over $27 billion of committed capital. WCAS is headquartered in New York, New York.
For additional information about this transaction, please contact: