Industry Update: IT Government Contracting

By: Edward Hamilton | PJ Patel | Raymond Weisner

VRC is proud to release its latest Industry Report. The report provides a concise, insightful update on the IT Government Contracting industry including recent transactions, market multiples, company performance and purchase price allocation percentages.

Read the full report: IT Government Contracting: March 2019

March 2019 Industry Highlights

  • Supported by a $674 billion FY2019 Defense budget, robust valuations, 75th Percentile Median 25th Percentile continued consolidation, and ongoing interest from non-traditional buyers, M&A activity remains strong. Although the funding environment remains positive, the outlook isn’t as clear as at this point last year.
  • ManTech is acquiring Kforce Government Solutions for $115 million, increasing its footprint at VA and providing access to the T4NG contract.
  • Backed by the Acacia Group, Applied Insight acquired ATG and Stratus Solutions in February. This followed its October acquisition of Organizational Strategies Inc. The transactions align with AI’s strategy of building an agile mid-market business supporting the federal government.
  • Prominent acquisitions by newer entrants to the space included ASGN’s acquisition of DHA Group, Parsons’ acquisition of OGSystems, and
    Huntington Ingalls’ acquisition of Fulcrum IT Services and G2.
  • In October 2018, DC Capital Partners’ portfolio company Caliburn International filed to raise $100 million in a public offering. Caliburn provides professional services and solutions to government and commercial clients.
  • Read the full March 2019 report here.

Past Industry Updates:

IT Government Contracting: September 2018

IT Government Contracting: March 2018

IT Government Contracting: September 2017

IT Government Contracting: March 2017