GTCR portfolio company Six3 Systems, Inc. has agreed to to acquire BIT Systems, Inc., a signal processing systems data company. Six3 Systems, based in McLean, Virg., was formed by GTCR in April of this year to acquire government services providers which focus on national security.
BITS is an Intelligence, Surveillance, and Reconnaissance (“ISR”) company that specializes in the design, development, integration and maintenance of signal processing systems, data analysis, software development, and other mission operations.
GTCR, one of the nation’s leading private equity firms, and Six3 Systems, Inc. (“Six3 Systems”), a GTCR portfolio company that specializes in providing national security and defense intelligence services, today announced a definitive agreement to acquire BIT Systems, Inc. (“BITS”).
BITS is an Intelligence, Surveillance, and Reconnaissance (“ISR”) company that specializes in the design, development, integration and maintenance of signal processing systems, data analysis, software development, and other mission operations. With more than 300 highly technical, trained and cleared employees, BITS is at the forefront of providing advanced solutions to its key intelligence community partners.
Six3 Systems was formed in April, 2009 when GTCR partnered with Robert Coleman, former President and COO of ManTech International. Six3 Systems completed its first transaction in July, 2009 when it acquired Harding Security Associates, Inc. (“HSA”), a leading provider of identity intelligence, forensics analysis and security services.
“BITS and its mission critical ISR capabilities will serve as a key component in achieving our objective of building a leading national security services provider with highly specialized capabilities,” said Robert Coleman, CEO of Six3 Systems. “We believe that the company and its innovative solutions represent the future of ISR systems development, systems engineering, and analysis. Combining BITS with our existing identity intelligence and counterintelligence competencies will create a highly strategic asset with strong capabilities in advanced data processing and analysis.”
“Since we closed the HSA acquisition, Six3 Systems has experienced strong growth which will be enhanced by the services provided by BITS,” added GTCR Principal Craig Bondy. “The company’s core capabilities are central to U.S. defense and intelligence strategies, and will continue to benefit from increased budgetary dollars. In addition, BITS’ strong reputation and management team make it a compelling investment opportunity for GTCR and Six3 Systems.”
“We are very pleased to join with Six3 Systems,” commented Tom Ladd, co-founder and President of BIT Systems. “We believe Six3 Systems’ relationships and infrastructure will help expand our reach into new agencies, while continuing to provide the agility and responsiveness valued by our existing customers.”
Mr. Ladd and his fellow co-founders, Tim Lewis and Brad Worsham, will assume key leadership roles in the new organization.
Kirkland & Ellis LLP served as legal counsel to GTCR and Six3 Systems. Financing for the transaction will be provided by Bank of America, Citizens Bank and SunTrust Bank. Sheppard, Mullin, Richter & Hamilton LLP served as legal counsel to BIT Systems. The transaction, which represents the second acquisition for Six3 Systems, is expected to close in December. Pro forma for the BITS acquisition, Six3 Systems will generate approximately $200 million of annual revenue.
About Six3 Systems
Six3 Systems, headquartered in McLean, Virginia, is a company focused on acquiring government services providers with a focus on national security. For more information about Six3 Systems email info@six3systems.com.
About GTCR
Founded in 1980, GTCR Golder Rauner, LLC is a private equity investment firm and long-term strategic partner for outstanding management teams. The Chicago-based firm pioneered the investment strategy of identifying and partnering with exceptional executives to acquire and build companies through a combination of acquisitions and strong internal growth. GTCR currently manages more than $8 billion of equity capital invested in a wide range of companies and industries. More information about GTCR can be found at www.gtcr.com.
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