Madison Dearborn Partners and CoVant acquire LGS Innovations from Alcatel-Lucent

Madison Dearborn Partners and CoVant have completed their previously announced acquisition of LGS Innovations LLC from Alcatel-Lucent. LGS Innovations is a provider of research and advanced networking and communications solutions to the U.S. federal government.

PRESS RELEASE

Madison Dearborn Partners and CoVant announced today that they have completed their previously announced acquisition of LGS Innovations LLC from Alcatel-Lucent. LGS Innovations is a leading provider of groundbreaking research and advanced networking and communications solutions to the U.S. federal government. The new ownership structure unlocks new markets and growth opportunities that were previously unavailable to LGS Innovations. Kevin Kelly, CEO, and the rest of the LGS Innovations management team will remain with the company.

“LGS Innovations has long been at the leading edge of developing and delivering highly innovative products and services to the U.S. federal government, and we are pleased to now be in a position to help the team expand its business,” said Doug Grissom, a Managing Director at Madison Dearborn and the head of the firm’s Business and Government Services team. “We also are delighted to partner with CoVant. We look forward to growing LGS Innovations in concert with them, the LGS management team and the LGS employees.”

LGS Innovations delivers next generation solutions that solve the most complex networking and communications challenges facing the U.S. federal government, state and local governments, foreign governments, and commercial enterprises worldwide. Formed during the Alcatel and Lucent merger in 2006 as an independent subsidiary and sole channel to the U.S. federal government, LGS offers groundbreaking research and development and builds advanced wireless, optical, and wired products and applications customized for specific mission environments. LGS has a heritage as a trusted partner of the U.S. federal government extending back over 60 years.

“As a market leader with a differentiated offering, LGS Innovations is a highly attractive business,” said Joseph Kampf, CEO of CoVant, and the former CEO of Anteon International and current board director of A-T Solutions. “The company is uniquely positioned for new growth channels as it can now pursue markets and customers previously closed to them as a subsidiary of a non-U.S. company. LGS Innovations has a strong portfolio of intellectual property, patents and products. Our focus will be to help the company build on this platform and deliver its technology solutions to an expanded array of clients around the world.”

The cash transaction between Alcatel-Lucent and the Madison Dearborn/CoVant group comprises a total amount of up to $200 million, of which 50 per cent is being paid at closing. Up to a further 50 per cent will form a subsequent variable component to be determined on LGS Innovations’s results from operations during the 2014 fiscal year.

“This transaction will better enable us to serve our customers in the civilian, defense, and advanced programs communities by doing what we do best – researching, developing, and deploying secure networking and communications solutions”
LGS Innovations will remain the exclusive reseller of Alcatel-Lucent products and services to the U.S. federal government. The company also will have exclusivity in sales to the integration and reseller community where the end customer is the federal government.

About LGS Innovations
LGS Innovations delivers next generation solutions that solve the most complex networking and communications challenges facing the U.S. Federal Government, state and local governments, foreign governments, and commercial enterprises. LGS offers groundbreaking research and development and builds advanced wireless, optical, and wired products and applications customized for specific mission environments. These solutions provide unique information and data security advantages that lead to the operational success of its customers. LGS’ offerings include:

• 4G wireless deployable communications for public safety, battlefield, and emergency and first responder communities
• Cloud and data center infrastructure
• Campus and building networking solutions for military bases, hospitals, and corporate centers
• Maritime applications for in-port and at sea communications
• Global networks (long-haul communications, including undersea cable)
• Enterprise voice, video, and data networking
• Network engineering, integration, and installation
• Video teleconferencing and IPTV suites
• Research and development in advanced multimedia/RF communications, cybersecurity, sensing technologies, and photonics

LGS Innovations is a U.S.-owned company headquartered in Herndon, Virginia, with offices in Colorado, Illinois, Maryland, New Jersey, New Mexico, and North Carolina. Formerly a subsidiary of Alcatel-Lucent, LGS is also the exclusive reseller of Alcatel-Lucent products and services to the U.S. Federal Government and any other entity when the end customer is the U.S. Federal Government. LGS maintains strong ties to Bell Labs and its technologies, and employs more than 450 scientists and engineers. To learn more about LGS Innovations, visit www.lgsinnovations.com.

About Madison Dearborn Partners
Madison Dearborn Partners, based in Chicago, is a leading private equity investment firm in the United States. Since Madison Dearborn’s formation in 1992, the firm has raised six funds with aggregate capital of over $18 billion and has completed approximately 125 investments. Madison Dearborn invests in businesses across a broad spectrum of industries, including business and government services; basic industries; consumer; financial and transaction services; health care; and telecom, media and technology services. Its noteworthy investments include Aderant, Asurion, Cbeyond, CDW Corporation, Fieldglass, Great Lakes Dredge & Dock Company, Intelsat, and Stericycle.

About CoVant
Founded by former executives of Anteon International, CoVant invests in and provides strategic, financial and operational resources to a portfolio of companies specializing in technology and related solutions that serve the needs of government customers. With an experienced team of business executives and a respected board of former government and military leaders, CoVant delivers a unique and highly strategic approach to maximizing company growth and value.

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