Vistronix closed its second acquisition this week, adding Kimmich Software Systems Inc. to expand its work with the U.S. intelligence community.
The acquisition is the second in just two days for Vistronix, which on Wednesday acquired NetCentric Technology, a company with big data, cyber and cloud computing skills.
Terms of the acquisition of Kimmich, which goes by the initials KSSI, were not disclosed.
Vistronix said in a statement that the acquisition of KSSI brings offerings such as cyber operations, signals processing, data analytics, software development and systems engineering.
With this transaction now complete, we are strategically positioned to accelerate Vistronix’s vision to expand our capabilities in the intelligence community and to deliver mission-critical solutions that enable efficient mission operations and ensure the protection of intelligence assets and information,” said Deepak Hathiramani, CEO of Vistronix, in a statement.
KSSI brings with a prime contractor spot on the National Security Agency’s Set-Aside for Small Business contract, known as NSET II. The multiple-award contract is used business, engineering, IT, operations support, and training services, according to an NSA website.
KSSI was founded in 1994 by Jeanne Kimmich Roberts.
The investment bank Aronson Capital Partners served as an advisor to KSSI.
See the original article here: http://washingtontechnology.com/articles/2013/12/06/vistronix-kssi-acquisition.aspx
During the last two weeks of October and first two weeks of November, all major Tier 1 and Mid-Tier Defense and Government Services contractors reported calendar Q3 results. This was good news for our Tier 1 index, who all reported Earnings Per Share (“EPS”) ahead of analyst expectations and raised full year 2013 EPS guidance. The market responded positively to the news, as four of six companies in our index experienced share price increases the day following the release of Q3 results. However, our Mid-Tier index did not fare as well, as over half of the companies lowered either revenue or EPS guidance (or both). Eight of 11 contractors in our Mid-Tier index experienced share price drops following the release of their Q3 earnings.
Based on calendar Q3 results, it appears continuing sequestration has impacted the Mid-Tier index more significantly than the Continue reading »
Over the past week, the major Tier 1 Defense Contractors all reported Q3 earnings per share (“EPS”) ahead of analyst expectations and raised full year 2013 EPS guidance. The widespread positive performance was one of the few bright spots amongst the contractor community in a month that was dominated by fiscal gridlock and 16 days of partial government shutdown.
Despite $37B of sequestration cuts having gone into effect and potentially impacting performance, a Continue reading »
A year-end investment review with your financial advisor is an important part of the wealth management process. Not only does this annual practice allow you to assess the health of your finances and adjust your financial goals, it also plays a vital role in the management and protection of your wealth.
As part of this process, a best-in-class financial advisor should provide you with your true financial performance versus appropriate benchmarks, discuss the year’s achievements and challenges, and offer you a detailed overview and justification of all fees. He or she should also discuss with you any changes to your personal situation, address any concerns you may have, and help you to develop a constructive plan of action for the coming year.
Unfortunately, not all financial advisors employ this best practice. Less-qualified professionals use Continue reading »
Building Shareholder Value in Today’s Defense and Government Services Market
Please join Aronson Capital Partners on October 31st for a webinar that covers the current state of the defense and government services M&A market and ways for management teams to build shareholder value in advance of an exit. The current budgetary environment has created new challenges and opportunities for government contractors, and our online presentation will focus on strategies to better position your business.
Topics will include:
- A review of current market trends
- Public company performance and valuation metrics
- The current M&A environment and transaction drivers
- Effective strategies to build shareholder value
- Viable exit alternatives for privately held firms
Click HERE to register!
IT Security Requirements for Government Contractors – Part 1
FISMA Compliance Oft Overlooked for Government Contractors - November 13th
Government contractors that house or have access to government data may be subject to Federal Information Security Management Act (FISMA) requirements. In fact, many contractors have FISMA compliance clauses in their contracts but may not understand them or even know they are there. Identifying and understanding contract clauses that require FISMA compliance is a
challenging, but necessary part of effective contract management. Noncompliance may result in fees or fines, loss/termination of the contract, or, worst of all, a security breach in your system(s).
Click HERE for more details and to register.
Affordable Care Act Basics for Government Contractors
Confused by the provisions of the Affordable Care Act? You’re not alone. Many government contractors are concerned about the impact of this new law on their business. Please join us on November 12th for a breakfast briefing on the specific aspects of the ACA that are most relevant to small government contractors. Presenters Mark Flanagan of Aronson LLC and Ronald Sroka from Evolve Consulting Group, Inc. will share their expertise on important topics that include:
- How the ACA affects your business
- Short-term requirements of the Act
- Long-term strategies for making sound business decisions related to healthcare
Click HERE to register!
In today’s government industry of questions and uncertainties, it is important to be aligned with an effective and motivated advisory board to help weather the storms and exceed your goals.
Join Jim Fennel of Aronson’s Government Contract Services Group on November 7th for a presentation by Marissa Levin, CEO of Information Experts, Inc. and author of the popular book Built to SCALE: How Top Companies Create Breakthrough Growth Through Expectional Advisory Boards. Ms. Levin leads business owners through her patent-pending SCALE Model to strategically select, compensate, associate and leverage advisory boards for breakthrough growth. At this informative seminar, she will discuss the necesssary tools and templates to follow this proven process.
The presentation will guide particpants on:
- How to Select who you need to get your business from where it is now to where you want it to be while enabling you to develop exceptional leadership skills
- How to Compensate your advisors (monetary, non-monetary and types of equity-based compensation)
- How to Associate them into your organization with an effective change of management strategy
- How to Leverage your advisors for business development, networking, process development & more
- How to constantly Evaluate and Evolve the board as your organization grows
- How to Exit advisors when they no longer fit
It will also explain the fundamentals, including the differences between a Board of Advisors and Board of Directors, the connection between corporate culture and an advisory board, diversity and boards, and consultants versus advisors.
There will be an opportunity for networking prior to the presentation.
Register today to reserve your spot at this information breakfast presentation; space is limited!
Date: November 7, 2013
Time: 8:00am-8:30am Networking; 8:30am-9:30am Presentation
Location: Aronson LLC – 805 King Farm Blvd., Suite 300, Rockville MD 20850
Government contractors of all sizes have certainly felt the impact of reduced spending and sweeping cuts over the last year. However, it is likely that the greatest damage is still to come. DoD spending cuts are expected to increase by 40% in FY2014 as compared to FY2013 ($52B vs. $37B). Additionally, mitigation tools and resources that have reduced the impact in FY2013 may not be available in FY2014 and future periods.
To date, the DoD has cut spending through furloughs and reductions in training, travel, and maintenance expenses. Additionally, the DoD has used unobligated funds from prior years to soften the impact of sequestration. Approximately $6B of unobligated funds from prior years was used to dampen spending reductions. Current sequestration plans demand $1 trillion of spending reductions over a 10-year period, with only $37B of that amount realized in FY2013. As the effectiveness of some of these mitigation techniques diminish, leaders will have to make tougher decisions on what expenses to attack next.
Continue reading about the challenges and implications of an uncertain future market in Aronson Capital Partners’ September Market Update.
CACI International’s recently announced acquisition of GTCR portfolio company Six3 Systems (“Six3”) represents the largest Government Services transaction since General Dynamics’ 2011 acquisition of Vangent. Despite unprecedented budgetary pressures for the government contracting community, the publicly disclosed 13.4x TTM EBITDA valuation for Six3 is also one of the higher multiples in our space over the past few years. The rich valuation is driven by a confluence of Six3’s attributes that can serve as an excellent case study for owner-operators who are striving to build value in their own business.
Our analysis of this transaction points to the following value drivers:
- Market Positioning –> Six3 is exclusively focused on priority markets that are perceived to be more insulated from budgetary pressures. Cyber Security represents approximately 20% of the target’s revenue, while C4ISR and Intelligence make up the remaining 80%. Six3 derives 75% of its revenue from the Intelligence Community with the remainder from DoD.
- Prime Contract Portfolio –> 80% of the revenue stream is derived from prime contracts, without any reliance on small business set aside revenue or other preference awards. Six3 has a diversified revenue mix with no contract making up more than 10% of revenue. Continue reading »
It seems hard to believe, but less than six months after the last budget showdown and shutdown, government contractors find themselves once again facing the prospect of a government shutdown. If the House, Senate and White House can’t come to an agreement over the budget and Obamacare, the stalemate may continue. With only a few days left for a Senate continuing resolution to be passed before the September 30th deadline, government contractors must be prepared for the hard times that may follow.
The total impact of a government shutdown is difficult to predict. Someone may “win” this game of brinkmanship but, regardless of their own political leanings, most government contractors, contractor employees, and the important government programs they support will suffer.
The experts of Aronson’s Government Contract Services Group released a whitepaper that describes steps contractors should take to prepare for and ultimately survive the shutdown. “The Government Shutdown – Contractor Perspective Likely Impacts and Possible Actions” is a great guide to help you build your action plan.
About the Author:
Thomas Marcinko is a Principal Consultant in Aronson’s Government Contract Services Group. He has over 25 years of government contracts experience, including proposal development, contract and subcontract administration, FAR compliance, small business programs, and government audits.
At the onset of our first government shutdown in almost two decades, government contractors may find themselves wondering what this will mean for their business. While much of the impact of the shutdown will depend on how long it lasts, there are things all contractors can do to put their business in the best position going forward. Click here to visit a pertinent article on Aronson LLC’s FedPoint Blog and read up on current shutdown issues. The article also contains a link to a free whitepaper, published in 2011, that will help you determine the impact of the shutdown and actions you can take right now!
As always, Aronson’s Government Contract Services Group is here to help you effectively navigate the government shutdown and other issues affecting your business. Call us at 301.231.6200 if you have questions or need assistance.
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- Performance Gap Between Tier 1 and Mid-Tiers Widens Following Q3 Earnings
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