The Bottom Line: NewSpring Enters into Definitive Agreement to Sell Avantus Federal for $590M
August 10, 2022
NewSpring, a family of private equity strategies, announced today that NewSpring Holdings, the Firm's dedicated buyout strategy, has entered into a definitive agreement to sell Avantus Federal (Avantus) to QinetiQ US, a wholly owned subsidiary of QinetiQ Group plc, for an enterprise value of $590 million. The closing of the acquisition is subject to customary conditions, including regulatory approvals, and is expected to close by the end of the 2022 calendar year.
Avantus Federal is a mission-focused data, cyber, and space services and solutions company
Avantus is a leading provider of mission-focused cyber, data analytics, and software development solutions to the Department of Defense, Intelligence Community, Department of Homeland Security, and other law enforcement and civilian agencies. From supporting sensitive national security customers on some of the most complex data engineering, cyber, and analytics problems in the world, to providing key mission operational, intelligence, and cyber support to special operators, and helping accelerate new technologies into the warfighter’s hands, Avantus has a strong track record of achieving speed-to-mission-impact.
NewSpring helped enable Avantus’ fast growth through a successful M&A strategy
Avantus has expanded through a combination of organic growth initiatives and a robust M&A strategy. Over the course of its investment, NewSpring helped identify, execute, and integrate eight strategic acquisitions that enabled the company to quickly expand its service offerings and respond to changing client needs. Since NewSpring’s initial investment, Avantus has grown from 12 to 1,200 employees.
“Our market is evolving rapidly and demanding more of our customers every day, and joining forces with QinetiQ US will deliver solutions at scale to meet the moment. With a shared culture of absolute customer focus and employee investment and a structure built for agility and speed, this opportunity to combine with QinetiQ US strengthens our defense presence and combined position across our intelligence and homeland, law enforcement, and civilian portfolio, and we are poised to continue our joint mission as an innovator unique to our market.”
NewSpring and Avantus’ partnership led to a fully integrated platform with consistent double-digit growth
“At NewSpring Holdings, we partner with proven leadership teams and board members at high-performing, lower-middle market companies to drive growth by implementing technology, infusing talent, making strategic acquisitions, and standardizing processes into a singularly integrated business,” said NewSpring Partner Lee Garber. “We’re always looking for smart opportunities to return capital to our investors and this transaction reflects our commitment to maximizing value for owners, operators, and our shareholders. We’re thrilled with the success Avantus achieved during our partnership and are honored to be a part of its growth story.”