Aronson Capital Partners, LLC, merger and acquisition advisors to the federal information technology and professional services industry, announced today that it facilitated the sale of CCI, Incorporated to Stanley Associates. This strategic combination will enable these Northern Virginia-based companies to better meet customer demand and compete in the expanding federal marketplace. The transaction reflects a continuing trend of consolidation across all tiers of the federal contracting industry.
“While M&A transactions between large prime contractors dominate the news, rapidly growing organizations such as Stanley are thriving in this market sector with a combination of organic growth and strategic acquisitions,” said Larry Davis, President of Aronson Capital Partners. “This is a unique market environment for owners of privately held companies. Valuations for well-positioned companies are attractive and there are many active acquirers. The key to a successful transaction hinges on the ability to wade through those options by relying on a well defined and disciplined sales process.”
While the structured sales process provided CCI with several options, Stanley differentiated themselves from the beginning with its clearly defined strategy and outstanding reputation in the industry. Following on the heels of recent acquisitions of such companies as Signal Corporation, Aegis Research and ADI Technology, this transaction provides further evidence that the competition, among buyers, for privately held companies competing in the federal marketplace remains intense. For companies with highly skilled employees, a strong customer base, and a well-defined path for future growth, valuations continue to come in at the top of the market.
Commenting on the transaction, Paul Chase, president and CEO of CCI said, “This was a very demanding process, and Aronson Capital Partners provided terrific advice every step of the way. They were instrumental in ensuring that our goals were met.”
Aronson Capital Partners, LLC
Aronson Capital Partners, LLC (“ACP”) is an investment bank which provides a full range of corporate finance services to federal and commercially focused information technology and professional service companies to assist them in achieving their growth and liquidity objectives. With more than 60 years of combined industry experience, the principals of ACP have a proven track record of completing successful transactions with middle-market companies. Securities transactions are executed by Aronson Capital Advisors, LLC (member NASD-SIPC) an affiliate of ACP.
CCI, based in Alexandria, VA, specializes in providing professional technical and management services to a variety of government agencies and commercial clients. Our expertise in management, engineering, logistics, warehousing, information technology, and video and photography is integrated into a coherent organization, designed to respond to clients’ needs quickly and effectively. CCI has more than 170 employees and multiple office locations, including Patuxent Naval Air Station, MD; Virginia Beach, VA; Elizabeth City and Havelock, NC; Jacksonville, FL; San Diego, CA; and Arlington, VA. While the majority of CCI’s work is with the Naval Air Systems Command (NAVAIR), other valuable clients include the USAID, NASA, and the US Coast Guard. CCI anticipates revenues of $17 million this year.
Headquartered in Alexandria, VA, Stanley Associates provides information technology and professional services including systems development, network engineering and support, systems engineering and technical assistance, operations management, remote hosting, and information assurance. Washington Technology recently ranked Stanley among the top 100 federal prime contractors and providers of IT services. Privately held, the company recently reached a $108 million revenue milestone and continues to grow due to repeat business, new customer wins, and strategic acquisitions. Stanley Associates regional offices are located in the Washington metro area and in Atlanta (GA), Charleston (SC), Jacksonville (FL), Portsmouth (NH), and Swansea (IL). The company also has operations and deploys personnel worldwide in support of numerous government clients.