The Carlyle Group has agreed to acquire McLean, Virginia-based Novetta, a provider of advanced analytics solutions, from Arlington Capital Partners. No financial terms were disclosed. Morgan Stanley & Co LLC and Houlihan Lokey provided financial advice to Novetta and Arlington Capital Partners on the transaction while Jefferies was financial advisor to Carlyle.
Washington, DC & McLean, VA – Arlington Capital Partners announced today that they have entered into an agreement to sell Novetta to the global alternative asset manager The Carlyle Group (NASDAQ: CG).
Novetta is a leading provider of advanced analytics solutions that help clients find clarity from complexity in dealing with massive disparate data sets that were never intended to be analyzed together. Grounded in its work for national security clients, Novetta has pioneered disruptive technologies in four key areas of advanced analytics: data, cyber, open source/media and multi-int fusion. Novetta’s tech-enabled solutions allow customers within the Intelligence, Defense, Homeland Security and commercial markets to master scale and speed in dealing with massive data sets. These solutions deliver actionable insights needed to help detect threats and fraud, protect high value networks and gain information advantage in driving business and mission success.
“After careful consideration of strategic alternatives, our board unanimously concluded that a Novetta partnership with Carlyle is the best next step in achieving our vision to be the world’s premier advanced analytics company,” said Peter B. LaMontagne, CEO of Novetta. “We remain dedicated to the success of our customers, partners, and employees and are excited to join with Carlyle, a long-term investor in a broad cross-section of aerospace, defense and commercial markets.”
Michael Lustbader, a Partner at Arlington Capital Partners, said, “We are exceedingly proud of Novetta’s advanced analytics technology and even more so of its application of these unique capabilities to challenges of national significance. Novetta will continue to drive innovation for its customers and we look forward to observing their success in the future.”
Adam Palmer, Carlyle Managing Director and Head of the Global Aerospace, Defense and Government Services team, said, “Novetta is an outstanding company and a clear leader in advanced analytics. We are excited to partner with Peter and his team to support Novetta’s mission and growth strategy by investing in the continued development of its people, capabilities and intellectual property as well as pursuing selective, technology-driven, complementary acquisitions.”
“Over the past five years, the focus on a growth-oriented investment strategy at Novetta has built value for all of the Company’s stakeholders,” commented Jeffrey Freed, Co-Founder and a Managing Partner at Arlington Capital. “Under Peter LaMontagne’s continued leadership, such a focus will continue to bear fruit for Novetta’s customers, employees, and new partners in the years to come.”
Ian Fujiyama, the Carlyle Managing Director who led the transaction, added, “Novetta is a world-class company whose success is driven by its highly talented workforce, entrepreneurial culture and unique technical offerings. We are excited by the prospects for its core government business and ongoing expansion into commercial enterprises, given its positioning with forward-looking early adopters, and its investment in next generation technologies in the areas of data and cyber analytics, open source intelligence and multi-int data fusion.”
David Wodlinger, a Principal at Arlington Capital, stated, “Novetta’s culture of innovation and its prominent role in the research and development efforts of the national security community make it a truly unique company. Management worked tirelessly to successfully execute the strategy we developed together, and this tremendous outcome is truly a testament to their steadfast work.”
Equity capital for the transaction will come from Carlyle Partners VI, a $13 billion buyout fund. Carlyle’s Global Aerospace, Defense and Government Services group has invested approximately $4.5 billion of equity in more than 40 companies since 1987. The transaction is subject to customary closing conditions and regulatory approvals and is expected to close later this year. Terms of the transaction were not disclosed.
Morgan Stanley & Co. LLC and Houlihan Lokey served as financial advisors and Sheppard, Mullin, Richter and Hampton served as legal counsel to Novetta and Arlington Capital Partners. Jefferies served as financial advisor and Latham & Watkins served as legal advisor to Carlyle. Jefferies and Société Générale have committed to provide debt financing for the transaction.
Headquartered in McLean, VA with nearly 750 employees across the US, Novetta has over two decades of experience solving problems of national significance through advanced analytics for government and commercial enterprises worldwide. Grounded in its work for national security clients, Novetta has pioneered disruptive technologies in four key areas of advanced analytics: data, cyber, open source/media and multi-int fusion. Novetta enables customers to find clarity from the complexity of ‘big data’ at the scale and speed needed to drive enterprise and mission success. Visit www.novetta.com for more information.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $193 billion of assets under management across 128 funds and 159 fund of funds vehicles as of June 30, 2015. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,700 people in 35 offices across six continents. www.carlyle.com
About Arlington Capital Partners
Arlington Capital Partners is a Washington, D.C.-based private equity firm that has managed $1.5 billion of committed capital via three investment funds, focused on middle market investment opportunities in growth industries including: government services and technology, aerospace/defense, healthcare, and business services & software. The firm’s professionals and network have a unique combination of operating and private equity experience that enables Arlington to be a value-added investor. Arlington invests in companies in partnership with high quality management teams that are motivated to establish and/or advance their company’s position as leading competitors in their field. www.arlingtoncap.com.