Aronson Capital Partners (“ACP”) is pleased to announce the acquisition of Operational Intelligence, LLC (“Operational Intelligence”) by E3 / Sentinel, a NewSpring Holdings Company. ACP served as the exclusive financial advisor to Operational Intelligence during this transaction, which was completed in December 2019.
Founded in 2008, Operational Intelligence addresses the nation’s most complex intelligence and warfighting challenges by providing mission-focused analytical, technical, operational, and training services to customers across the Department of Defense (“DoD”) and the U.S. Intelligence Community (“IC”).
With an increased focus from the Federal government on all-source and single-source intelligence operations capabilities, Operational Intelligence won numerous contracts and achieved rapid organic growth over the last few years. Amy Lewin, President and CEO of Operational Intelligence, sought an acquisition with a larger platform to expand the Company’s ability to deliver its high-end capabilities to a broader universe of customers while providing additional resources and growth opportunities for her talented employees.
Following the completion of the acquisition, Amy Lewin said, “We are excited to join forces with E3 / Sentinel and integrate their deep and broad capabilities and infrastructure with our own. With their strong leadership team, talent-focused culture, and willingness to invest in solutions for customers, we couldn’t be more thrilled to be joining such a great organization.”
Andy Maner, the E3 / Sentinel CEO added, “The acquisition of Operational Intelligence immediately strengthens our mission and domain expertise across many of our National Security customers and brings an enduring new set of capabilities to our Mission Strategy & Analytics and Engineering & Technical Services for all our clients. Operational Intelligence’s extremely skilled workforce is known for its innovation, nimbleness, and mission effectiveness as they address some of the nation’s most complex intelligence and warfighting challenges. We are thrilled to combine our continuum of capabilities with this exceptional company.”
ACP believes this transaction highlights several key trends in the lower middle M&A market:
- Private equity-backed platforms are deploying capital to expand high-end capabilities that serve a broader group of DoD and IC customers
- Acquisition targets in the national security market with mission-focused analytic and technical solutions are attracting significant M&A interest from both strategic buyers and private equity sponsors
- Private equity sponsors offer owners the ability to generate substantial liquidity at attractive valuations while still being able to participate in future value creation