“GovernmentCIO (“GovCIO”), a leading provider of high-end technology and digital solutions to the federal health IT services market that is backed by Welsh, Carson, Anderson & Stowe (“WCAS”), today announced it has agreed to acquire Salient CRGT (“SCRGT”), a leading provider of data analytics, cloud, agile software development, cybersecurity, and infrastructure solutions to U.S. national security, federal civilian, and federal health agencies, from Bridge Growth Partners and Frontenac.”
“The combination of GovCIO and SCRGT 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. Jim Brabston, GovCIO’s CEO, will lead the combined company. Tom Ferrando, SCRGT’s CEO, will join the board of directors and long-time industry veteran Phil Nolan will become chairman of the combined company, which will be named GovernmentCIO, following the close of the transaction. The combined company will have more than 2,200 employees and revenues of approximately $700 million in 2021.”
“We’re thrilled to partner with SCRGT and its outstanding team, who share our commitment to delivering high-value solutions that make positive impacts on missions and lives,” said Brabston. “SCRGT’s highly differentiated ability to deliver innovative solutions and strong customer relationships have fueled its success to-date, positioning it as a clear market leader. Together, we are confident that we have the scale and additional capabilities to deliver even greater value to a broader set of federal customers. We are delighted to partner with SCRGT’s leadership team and employees moving forward.”
“We’re excited to join forces with GovernmentCIO as we have a strong cultural and strategic fit with each other and the combination will take our company to the next level as part of a premier, scaled platform,” Ferrando said. “Over the past few years, we have attracted and retained some of the best talent in the industry and have also successfully executed multiple organic growth initiatives and transformative acquisitions. We leveraged Bridge Growth and Frontenac’s deep industry relationships, knowledge and expertise to become a leading player in the government IT space. We are highly confident that the strong combination with GovernmentCIO will propel our combined businesses even further as we help serve the nation.”
Phil Nolan, chairman of the SCRGT Board, said, “This transaction is a strong validation of SCRGT’s business-building strategy and market positioning. I have long known and greatly admire GovernmentCIO and its leadership team and am confident that the combination of our complementary teams and deep network of long-term relationships will enable us to capitalize on the many growth opportunities ahead as a stronger, unified company.”
Mike Donovan, head of Technology and general partner at WCAS, said, “The addition of SCRGT to the GovernmentCIO platform marks an exciting new chapter for the company and aligns with Welsh Carson’s goal to rapidly grow the company through a focused acquisition strategy. We’ve been impressed by SCRGT’s growth in recent years, as well as its key talent, innovative solutions and deep commitment to its customers. We are excited to support the combined company as it embarks on its next stage of growth…”
Source: GovernmentCIO, a Welsh, Carson, Anderson & Stowe Company, to Acquire Salient CRGT from Bridge Growth Partners and Frontenac, July 8, 2021. PR Newswire.
G2X TAKE: This leading provider of high-end technology and digital solutions to the Federal Health IT services market has agreed to acquire this leading provider of data analytics, cloud, agile software development, cybersecurity, and infrastructure solutions to U.S. national security, Federal civilian, and Federal Health agencies to create a combined company of more than 2,200 employees and revenues of approximately $700 million in 2021.
- This news comes less than a year after Welsh, Carson, Anderson & Stowe (“WCAS”), a leading technology-focused private equity firm, announced it had made a strategic investment in GovernmentCIO (“GovCIO”), a leading provider of high-end technology and digital solutions to the Federal Health IT Services market. More here.
- Earlier in that same year the service-disabled Veteran-owned Sprezzatura-GovernmentCIO Joint Venture had acquired a Prime contract holder position on the VA T4NG IDIQ. More here.
- GovernmentCIO itself has had significant success at VA with recent wins to include a $150M VA Portfolio, Product Line, and Product Management Support task win; a Data Management and Analytics Division (DMAD) Support task; a $179M VA Technology Incubation Services task; a $99M Paper Mail Conversion and Management Services support task; and a $35M VBA Electronic Mail Management Services task.
- GovernmentCIO was recognized once again for their Astounding Growth by ringing in at #848 on the 2020 Inc.5000 list and was named to the updated list of NXT UP firms poised to make big waves in the Federal sector in 2020 and for years to come.
- Earlier this year Salient CRGT announced a contract award under the Pool 1 of the GSA One Acquisition Solution for Integrated Services (OASIS) Indefinite Delivery, Indefinite Quantity (IDIQ) vehicle. More here.
- Just a few months ago it was announced that Salient CRGT and Digital Consultants had formed Digital Salient Solutions, an 8(a) Mentor-Protégé Joint Venture to enable the agility of a small business while providing the resources, power, and expertise of a large business. More here.
- Led by CEO Tom Ferrando and Rebecca Miller, Sector President for Health and Civilian Agencies, Salient CRGT, who has over 3 decades of experience serving U.S. Federal Government organizations, was named to the list of NXT UP firms poised to make big waves in the Federal sector in 2020 and for years to come.