The consolidation streak is alive and well in D.C.’s tech ecosystem.
July in Greater Washington brought upwards of $100 million in local startup funding alone – but on the exit side of investments, a wide range of technology companies are tying the knot.
Here are the biggest D.C.-area merger and acquisition deals from last month.
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McLean-based KLDiscovery, a global provider of data services, announced its acquisition of New York's Strategic Legal Solutions and Richmond's Compiled. Financial terms were not disclosed. They are expected to be fully integrated by Q4, and KLD estimates the move will add $12 million of revenue next year. Both targets offer a software upgrade to the company, which offers eDiscovery, information governance and data recovery solutions to law firms, government agencies and other enterprises.
D.C. quantum computing software startup QxBranch was acquired by Berkeley, California-based Rigetti Computing in an all-equity deal. QxBranch CEO Michael Brett will join Rigetti as senior VP of applications, while the remainder of its employees will serve in software engineering and business development roles, according to the companies. The local startup was founded in 2014 as a spinoff of Australia's Shoal Group and Alexandria defense consulting firm The Tauri Group, and had raised $8.5 million in funding.
Gaithersburg, Md.-based biotech firm Altimmune agreed to acquire California drug developer Spitfire Pharma. Under the deal, Altimmune will make a $5 million payment in common stock to Spitfire equity holders, who could also receive up to $88 million in future milestone payments. The acquisition tosses Spitfire’s main product candidate — a treatment for NASH, a condition that creates fat buildup in the liver — into Altimmune’s pipeline of flu and anthrax vaccines.
McLean's Altamira Technologies was acquired by an investor group led by ClearSky, a venture capital firm, with plans to use the backing as a catalyst for more growth and investments. The company provides analytics and engineering services to the national security community.
McLean-based TechnoMile, a cloud software developer, announced that it acquired Bethesda-based Carroll Publishing for undisclosed terms. Carroll operates a database of contact information for government decision-makers through GovSearch and FedSearch. TechnoMile plans to operate that business under a newly formed entity, Lead Connector, which will integrate the content with its growth, compliance and operations platforms.
Systems Planning and Analysis, an Alexandria-based tech services provider for national security and defense customers, acquired fellow government-focused Alexandria firm Veracity Forecasting and Analysis. Financial terms were not disclosed. Veracity uses operations research, data science and predictive analytics to help clients make complex decisions.
McLean-based Ntiva, a provider of IT, cloud hosting, cybersecurity and consulting services, acquired HigherGround, an IT and consulting firm based in Chicago. The deal expands Ntiva’s coverage into the Midwest, adding to its existing markets in the DMV, California, New York and Florida. It also increases Ntiva’s client base to over 900 organizations in the U.S.
Octo, a locally based consulting services provider for the federal government, announced its acquisition of Phoenix-based software developer Connexta. Through the acquisition, Octo is bolstering its client base in the intelligence community and Department of Defense, particularly with the Air Force and its software labs. The move adds roughly 130 employees to its roster, primarily in full-stack and cloud engineering. It also adds offices in Boston, Denver and Phoenix.
SecurCapital Corp., a California-based supply chain and financial services provider, announced the acquisition of the lending business of McLean's Breakout Capital Finance. Breakout, a fintech provider and small business lender, is also nabbing additional equity capital from SecurCapital to grow its existing product line. The acquired assets will be operated by a subsidiary of SecurCapital and will conduct business as Breakout Capital.
Private equity shop Genstar Capital has completed the acquisition of Advarra, a Columbia, Md.-based provider of compliance solutions for the drug development process. Linden Capital Partners was the seller, and financial terms weren't disclosed. Advarra is no stranger to the M&A game: It was formed through the merger of Chesapeake IRB and Schulman IRB in 2017, and in February last year it completed an acquisition of Quorum Review.
Publicly traded McLean cloud provider GTT Communications is buying European telecom and IT company KPN International for $56 million in cash. The acquisition would give a major boost to GTT’s presence in Europe, with the company gaining KPN’s staff, assets and 400 retained clients. The deal, which is expected to close in Q3, follows GTT's June 2018 purchase of Interoute, another European telecom firm, for $2.3 billion.
McLean-based A-TEK Inc., a woman-owned IT and scientific services company, acquired fellow McLean woman-owned IT systems engineering company Mackson Consulting. Terms were not disclosed. The companies' similar client lists and successful contracting records inspired the investment, according to a statement. A-TEK currently has employees in 12 states and 19 cities nationwide.
