Venable Closes $500 Million in Deals Thus Far in 2007, Keeps Pace in Frenzied Government Contracts M&A Market

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Washington, D.C. (July 19, 2007) Venable LLP announced today that its Government Contractor Services Group has closed eight transactions involving companies in the government contracting industry since the first of the year.  The transactions have a total announced value of $500 million.

Venable’s robust deal activity so far in 2007 demonstrates the firm’s leadership as the industry diversifies away from its traditional roots and the market for government contracting companies continues to grow.

“The most obvious sell-side trend we’ve observed recently,” said Joe Schmelter, co-chair of Venable’s industry-specific Government Contractor Services Group, “is the increased variety in the types of interested buyers.  In addition to traditional strategic buyers, we are seeing more private equity groups and SPACs – special purpose acquisition companies – showing real interest in our clients.  Of the four sell-side transactions we’ve closed so far this year, two have been to strategic buyers, one was to a private equity buyer and one was to a former SPAC,” Schmelter said.  He noted that of the Group’s eight deals closed thus far in 2007, exactly half have been on the “buy side” and half on the “sell side.” 

Wallace Christner, a partner at Venable and one of the firm’s leading M&A attorneys added: “The buy-side market remains very competitive, with buyers willing to pay significant premiums to complete transactions complementing existing strengths or providing access to new markets.”

Transactions Venable closed so far during 2007 include:

  • Represented CritiCom, Inc. in its agreement to be acquired by Ultra Electronics Defense Inc., an indirect subsidiary of Ultra Electronics Holdings plc (UK:  ULE) for $23 million (July 2007)
  • Represented Swales & Associates, Inc. (Swales Aerospace) in its sale to Alliant Techsystems Inc. (NYSE:  ATK) (June 2007; terms not disclosed)
  • Represented ManTech International Corp (Nasdaq: MANT) in its acquisition of SRS Technologies, Inc. for $195 million in cash (May 2007)
  • Represented Dataline Holdings, Inc. in the sale of its subsidiary, Dataline, Inc. to DLN Holdings LLC, an affiliate of the White Oak Group (April 2007; terms not disclosed)
  • Represented Suntiva, LLC in its acquisition of the Professional Services Division of C-Systems International Corporation (Apr. 2007; terms not disclosed)
  • Represented Stanley, Inc. (NYSE:  SXE) in its acquisition of Techrizon, LLC for approximately $30 million in cash (Apr. 2007)
  • Represented Reliable Integration Services, Inc. in its sale to ATS Corporation (OTCBB: ATCT) (Mar. 2007; terms not disclosed)
  • Represented Perot Systems Corporation (NYSE:  PER), and its subsidiary Perot Systems Government Services, Inc., in their acquisition of QSS Group, Inc. for $250 million in cash (Jan.2007)

In addition, Venable represented Advanced Concepts, Inc. in its agreement to be sold to L-1 Identity Solutions, Inc. (NYSE:  ID) for $71.5 million in cash and the potential for an additional $6 million if key performance thresholds are attained.  The transaction is expected to close upon completion of customary conditions.

Venable attorneys involved in the firm’s 2007 transactions include:

Mergers & Acquisitions: Wallace Christner, partner; Jimmy Dvorak, partner; Beth Hughes, partner; Joe Schmelter, partner; Erin Galper, associate; Monica Grande, associate; and Emily Murphy, associate

Government Contracts: Scott Hommer, partner; Bill Walsh, partner; Keir Bancroft, associate and Peter Riesen, associate

Employee Benefits and Executive Compensation: Andrea O’Brien and John Wilhelm, partners

Intellectual Property: Nora Garrote, partner; and AJ Zottola, associate

Tax:  Norman Lencz, partner; and Brian Masterson, associate

One of the American Lawyer’s top 100 law firms, Venable LLP has attorneys practicing in all areas of corporate and business law, complex litigation, intellectual property and government affairs. Venable serves corporate, institutional, governmental, nonprofit and individual clients throughout the U.S. and around the world from its headquarters in Washington, D.C. and offices in California, Maryland, New York and Virginia.