D.C.’s tech ecosystem stayed busy as summer came to an end.
September in Greater Washington brought upwards of $96 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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British defense contractor QinetiQ Group announced plans to acquire Lorton-based Manufacturing Techniques Inc. for $105 million, more than doubling the size of its U.S.-based operations. The purchase provides QinetiQ, which offers services across the defense space, with MTEQ’s sensor development and rapid prototyping operations – which are in high demand at the Department of Defense. The deal will add MTEQ’s 360 employees to QinetiQ, increasing its U.S. headcount to about 750 employees.
D.C. edtech innovator EverFi announced its first international acquisition with the addition of EdComs, a company specializing in education that drives social change. EdComs, a 25-year-old company headquartered in London, has a client base that includes global technology companies, sports leagues, big consumer brands and several foundations. With the acquisition, EverFi will have a dedicated international presence and an on-site team in London to service global customers in Asia, Europe and the Middle East.
McLean contractor By Light Professional IT Services announced it will acquire Cole Engineering Services, a training and analysis system developer for military agencies. By Light said it expects to close the deal, for undisclosed terms, by the end of the year. CESI is the company's fourth acquisition since being purchased by private equity firm Sagewind Capital two years ago, joining Axom Technologies, Phacil and Mentova Federal on the consolidation streak.
D.C.-based business media company Industry Dive was acquired by Charlotte private equity firm Falfurrias Capital Partners. The deal, for undisclosed terms, comes as the 7-year-old publisher looks to expand coverage into new industries, CEO Sean Griffey said in a statement. Industry Dive told the WBJ in 2018 it would post $22 million in revenue that year.
Rockville-based technology advisory firm Dinocrates Group acquired D.C.'s Global Management Systems Inc., a 30-year-old communications firm focused on the federal market. The deal expands Dinocrates’ services into mission critical communications technology infrastructure for organizations including the Department of Defense. GMSI is the company's first corporate acquisition, building on its recent establishment of a new office in Jacksonville, Fla., and giving it a total of 90 employees across eight states.
Reston-based marketing shop Buffalo Groupe acquired Charlotte-based 54 Brands in its third acquisition since forming in February. Terms of the deal were not disclosed. 54 Brands was founded in 1985 and offers marketing services for furniture, higher education, professional services, franchising and finance companies, but with a focus on the golfing market. Buffalo Groupe was formed after Billy Casper Golf division Buffalo Agency spun off into its own company early this year.
D.C.-based marketing agency Yes& acquired GreenSmith PR, bringing its employee count to more than 80. Mike Smith, a Washington ad veteran who has led agencies like Burson-Marsteller, Edelman PR Worldwide and Havas Public Relations, is joining Yes& as senior VP and president of the company's new GreenSmith PR division. The deal follows the marketing shop's previous acquisitions of LeapFrog Solutions, ConnellyWorks and Carousel30.
Woodbridge, Va.-based IT and cybersecurity company Sev1Tech is expanding into the military realm with the acquisition of Chantilly's Engineering Solutions and Products. Terms were not disclosed. The move pairs Sev1Tech’s expertise in tech modernization and cloud management with ESP’s portfolio of systems engineering, supply-chain and defense services. It will double the size of Sev1Tech, which is backed by New Jersey's DFW Capital and Chevy Chase-based Enlightenment Capital.
Publicly traded Gaithersburg biotech firm OpGen is acquiring German molecular diagnostic company Curetis in a move that will create a combined firm worth $24 million. OpGen, a precision medicine developer, will make Curetis a wholly owned subsidiary and the combined company will trade on the Nasdaq exchange. The move adds to its portfolio, now made up of products focused on both infectious diseases and antimicrobial resistance. OpGen plans to raise $10 million in funding this year.
Government contractor CGI acquired asset management software provider Sunflower Systems for undisclosed terms. Sunflower was founded in 1992 and is based in San Ramon, Calif., with offices in Arlington. The company’s software supports decision making, accountability and regulatory compliance for asset management.
McLean-based Dovel Technologies acquired Reston IT services company Ace Info Solutions for undisclosed terms. The merger provides a larger federal contract presence to Dovel's footprint in health IT, grants management and life sciences technology.
Bethesda-based education company Teaching Strategies is dipping into more tech with the acquisition of Denton, Texas-based ReadyRosie, an app for family-teacher communications. Terms of the deal were not disclosed, but the app company's 55 employees will add to a headcount of 170 at Teaching Strategies. ReadyRosie is used by more than 6.5K Head Start programs and child care centers, which are the main users of Teaching Strategies' curricula.
