Success Stories

/Success Stories
Success Stories 2017-03-01T14:50:52+00:00

42Six

42Six was a cutting-edge “Big Data” analytics company, headquartered in Columbia, MD, which spun-off from a larger government technology business. It was led by two young veterans of the Intelligence Community and Defense Department who were first-time entrepreneurs with a unique mix of technical expertise and advanced business acumen.

Our team partnered with these entrepreneurs to introduce them to new customers, new channel partners, middle-level management, and technical talent. We assisted them with the upgrade of their business development and pipeline management processes. The company grew revenue and EBITDA by almost 100% during our involvement.

42Six attracted multiple preemptive acquisition offers from strategic partners. We worked with the team to maximize the purchase price and the company was acquired by Computer Sciences Corporation (NYSE: then CSC, now CSRA), for a significant premium to comparable transactions. That outcome also provided life-changing wealth creation for the two co-founders and triple-digit annualized returns for Blue Delta.

KTSi

KTSi was an industry-leading provider of highly classified space and satellite superiority solutions, which was headquartered in Chantilly, VA but also had significant operations in Los Angeles, CA and Colorado Springs, CO. The company was founded by a former special operator who later partnered with a serially successful entrepreneur who served as CFO/COO.

Blue Delta’s team helped the company with several key hires and assisted in establishing a robust infrastructure (including a new accounting system to support a massive cost plus prime contract win). We also shaped the go-to-market strategy in adjacent customers and implemented formal business development and pipeline processes. KTSi grew revenue by 130% and EBITDA by more than 600% during our involvement.

After receiving a number of pre-emptive acquisition offers, the company produced a significant dividend for shareholders and then initiated a formal sales process led by an investment bank. BDCP helped the management team successfully navigate that process and ultimately the business was successfully sold to Scitor (now NYSE: SAIC). This outcome yielded life-changing wealth creation for the founder and a number of the management team members, as well as a significant double digit return for our investors.

Acentia

Acentia was a later-stage healthcare pure-play headquartered in Falls Church, VA, which provided IT and clinical support to US Federal Government customers including the FDA, CMS, MHS, CDC, and IRS (specifically its role enforcing the Affordable Care Act, “ACA”).

We invested in Acentia after our Venture Partner, Todd Stottlemyer, became the CEO of the company (this exit was his 4th successful company in the government contracting market). Despite being a small shareholder, we used our federal healthcare domain expertise to source several successful proprietary acquisitions for Acentia, most notably one that positioned them to capitalize on of the regulatory and compliance changes mandated by adoption of the ACA.

Acentia grew healthcare-related revenue nearly four-fold during our involvement and also divested some lower margin, non-strategic business units. After receiving preemptive interest from several acquirers, the company initiated a formal sale process led by an investment bank. Acentia was acquired by MAXIMUS Inc. (NYSE: MMS), for an amount that was roughly twice the enterprise value at the time of our investment.

PAE

PAE is a leading provider of mission support and “smart power” services and solutions to the State Department, USAID, and Defense Department customers. The company is headquartered in Arlington, VA.

Blue Delta was originally contacted to aid in a management-led buyout of the unit from its then-parent corporation, Lockheed Martin. Given the size of the business, we partnered with Lindsay Goldberg LLC (LG) who led the acquisition of the business and we became a small shareholder alongside LG.

Our team recruited the new CEO and Executive Chairman, and provided them and the management team with insights and introductions into various federal customers. We also helped LG and the management team set strategic direction and then re-shape the customer and contract portfolio through a series of acquisitions, as well as producing two significant dividends for shareholders along the way.

After tripling revenue and quadrupling EBITDA, as well as winning several large, long-term new contracts, and key re-competes, the company initiated a formal sale process led by two investment banks. PAE was acquired by Platinum Equity for an amount which provided excellent double digit returns for our investors.

Project “HALO”

HALO was a market-leading provider of financial analysis software and human capital management solutions to both commercial and government customers.

Blue Delta participated in a financing that helped HALO scale its management team, including helping recruit a new CFO/COO well known to Blue Delta, as well as increase its presence in the government marketplace.

After significantly growing revenue, HALO was acquired by a large publicly traded financial services company, providing a very nice double digit annual return for our investors.

Project “G$”

The Company was a significant provider of commodity IT solutions to the US Federal Government marketplace, which was originally looking to scale its corporate venture capital activities, particularly in the technology services arena.

Our efforts helped evolve the company’s strategy, which then allowed us to help recruit new management team members and support a large divestiture. With the proceeds from that divestiture we helped source a key tuck-in acquisition for the company, which catalyzed their pivot to higher value-added services and solutions in the marketplace.

After that repositioning, the Company was acquired by a multi-billion dollar, privately-held technology company, producing a good double digit annual return for Blue Delta.