Baird's Investment Banking Group is pleased to announce the following transaction:

Date:
October 2021
Company:
Systems Planning and Analysis, Inc. (SPA)
Description:
Sale to Arlington Capital Partners
Sector(s):
Technology & Services
Baird served as financial advisor to SPA on this transaction

Systems Planning and Analysis, Inc. (“SPA”), a portfolio company of CM Equity Partners (“CMEP”), has agreed to be acquired by Arlington Capital Partners (“ACP”). The transaction is subject to customary closing conditions and regulatory approvals.

For nearly 50 years, SPA has been a premier provider of innovative and data-driven, knowledge-based solutions, driven by a highly technical workforce and custom software tools in support of complex national security programs and defense priorities. SPA provides systems engineering, modeling and simulation, advanced analytics, strategic advisory, and industrial policy solutions to government and defense 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 Defense. SPA is headquartered in Alexandria, Virginia.

Following closing, ACP’s existing portfolio company, MCR, LLC (“MCR”) will be combined with SPA. The combination of SPA and MCR creates a premier independent advisory firm that will provide specialized advisory solutions to the most critical and complicated government missions. The combined company will have more than 1,200 employees, ~$350 million in revenues and 125 proprietary software tools.

ACP’s acquisition of SPA illustrates the following buyer priorities in Government & Defense M&A: (1) establishment of an independent platform to provide model-based systems engineering and technical advisory support; (2) appreciation of long-standing brand and heritage supporting missions of national importance; and (3) continued private equity interest in the Government & Defense market.

CMEP is a private equity firm based in New York, New York that focuses on the federal professional services and aerospace and defense industries. Since its founding in 1992, CMEP has made more than 55 acquisitions and investments in the federal professional services sector. CMEP’s team brings an active and collaborative management approach to its investments by partnering with management teams, developing long-term strategic plans, and supporting the re-investment of profits to grow and broaden a company's revenue base and capabilities.

ACP is a Washington, DC-based private equity firm that is currently investing out of Arlington Capital Partners V, L.P., a $1.7 billion fund. The firm has managed approximately $4.0 billion of committed capital via five investment funds. ACP is focused on middle market investment opportunities in growth industries including government services and technology, aerospace & defense, healthcare, and business services and software.

For additional information about this transaction, please contact:

Jean Stack +1-703-394-1831
John Song +1-703-394-1832
Alex Sevilla +1-703-394-1833
Nicole Coffey +1-703-394-1835
Jonathan Kirkland +1-703-394-1867
Greg Saydah +1-703-394-1834